First Tidal Acquisition Corp T.AAA

Does the news out of Russia matter here? Maybe

[ledrog]

Wolf and other posters seem anxious for particapants in this forum to completely dismiss the going on between BPC and Uralkali.....fair enough.  Their opinion seems to be that Allana will never make it to actual operation, which if true would mean that the news out of Russia is in fact completely without import.

But if you look at it another way it is extremely important. 

Because Uralkali has a distinct opex advantage over its competitors it has been suggested that they were looking to engage in something akin to predatory pricing.  Basically flooding the market with theiir potash at discount prices in an effort to perhaps put other higher cost producers out of business.  Then after the dust settles they would be in a position to reap massive  profits as the supply demand curve would make them the dominant player in a higher cost environment.

Simple really...so where does Allana figure in.

Assuming Allana gets to production, and their projections of robust economics prove accurrate....then Uralkali has a serious competitor, one more than capable of competing on price.

Maybe Allana will make it, and maybe they won't.  But from Uralkali's point of view it is in their best interests if Allana fails.  

Has anyone ever suggested the Russians play nice?