RE:RE:Price in Potash flooding
BHP is suffering enough cause they said it would take 2 years to sink a shaft, and its looking like its going to be 10 year with cementing at their current pace!! and how much money can they keep injecting into a hole? No pun intended lol.
last rumour i heard floating around. Is they have problems downhole, big problems. The same problem that every shaft mine has in Saskatchewan. BLAIREMORE. All the good spots are already taken for a shaft mine in Saskatchewan. Its why solution mining is the way to do this properly. Let the water carry your potash from 1000 meters deep (3000ft) to the surface and process it on surface. Cut those fatatlity numbers down and reduce maintainence on all those wearing parts handling ore.
BHP does need help from anyone on losing money. They lost half their company with coal and iron ore dropping 60% last year. Also fired there whole upper management and this is a new President with new Sr. Management. BHP spent $2B, how much more money does ignorance cost to keep going on a mine that has the potentail to flood??
Uralkali has expenses of roughly $170 for every ton of potash it produces.
That compares with the industry average of $240 a ton, an agricultural analyst at Goldman Sachs noted in a report Tuesday.
This must include the maintenance of handling all that ore. A maintanence $$$ that is always deffered into CAPEX some how, not OPEX. Every 6 months a skip or Bucket that hauls the ore to surface is replaced due to wear. Either scapped or reconditioned. This hidden cost only applies to Conventional Mining with a shaft/elevator/head frame.
Solution mining is just 2 pieces of pipe inside each other and a pump . If that OPEX is correct, than all solution mining projects have similiar if not cheaper OPEX than Conventional.
Everyone is missing the point here. The junior companies have better engineering, better equipment, better OPEX, lower CAPEX, better way of mining potash. So Uralkali is adding an additional 2.5 MT capacity. So what happens when all of Canpotex shuts down. There would be a 40% shortage of Potash on the world level. The 2.5MT DOES NOT replace all of saskatchewan outputs.
Our TSX banking system and market is doing anything to pull money out of the investor. Anyone noticing all the anomynous trading (cross trading between banks) Get the price low and pull it away from investors and the banks hold the shares when there worth somethng in 5 years.
https://www.uralkali.com/upload/iblock/fe5/Business_Model_ENG.pdf
This link shows what Uralkali process is. Look familiar, its
floatation and crystallizers. Exactly the same as what Saskatchewan is using and we have cheap cheap gas from Alberta.
Who is the President of Uralkali to make a comment, and our capital market bail on its local projects, on a flimsy statement? There is
no contract, no new tonnage, and no ways of reducing transportation. Unless they have aquired a "transportor" from Star Trek and can ship large quanities across the world in a second. I call BS on all levels. just a scare to all juniors to have to redo there IRR (rate of return on $300 per ton which makes every producing Potash company lose 25% of it revenue and every project/mine unfeasible)
BMO Capital Markets analyst
Joel Jackson called the announcement
“the end of the potash world as we know it.” He believes potash earnings estimates will move “materially lower” and global price estimates could fall by US$100 a tonne.
(I think this comment was intiated from our banks and media, We cant have individuals making money and the institutions not raping the working the class. How will the banks survive? J-Jacks reminds me of the crazy guy holding the sign saying the world is over and the apocolype is coming....lol )
The banks always win!! They have no faith in Canadian Projects and why KRN, WPX, AAA, K+S have had to go to Foreign partnerships and financing outside of Canada.