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WESTERN POTASH CORP T.WPX

"Western Potash Corp is engaged in the acquisition, evaluation, and exploration of mineral properties containing potash in Western Canada. The Company holds interests in the Milestone Project located in Southern Saskatchewan."


TSX:WPX - Post by User

Comment by blackwood2002on Feb 24, 2014 3:04pm
314 Views
Post# 22244194

RE:Theory: K+S makes bid for WPX within 6 month.

RE:Theory: K+S makes bid for WPX within 6 month.I'm not buying your KS bid theory. The Chinese are buying long term commodity supply rights in many different commodities all over the planet. Between WPx mgt and china blue they hold collectively 46% of the share float. Both mgt and china blue are not intersted in selling and cetiantly not for 250mm. This is WPx mgts meal ticket and they are not letting it go if at all. Besides, KS is somewhere 25-30% over budget on the original cap ex that was projected in the legacy FS. They have since reduced ramp up production timeline and to full capacity to protect excess capital spend. So they don't have a war chest of extra capital kicking around for acquisitions of assets. I know some to the guys at zimtu capital who are part on the mgt 27% holdings and they are in the business of capital funding and expect multiple 100's or 1000's percent returns on their early stage financing .. Not to simply make a small return. So wpx in my opinion will not be sold .. The Chinese will pony up debt financing for build out and or another JV partner with a debt to equity conversion piece will come to the table along with financing from a 3rd party. I hope mgt will speak to progress on Wednesday at the Agm but I suspect if its not a signed deal they wont talk about it other than to say by the summer.. Although they said 1st qtr this year last time.. Hold on for the ride.. It's coming.. 
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