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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 materialsgirlon Jun 05, 2014 11:18am
612 Views
Post# 22633353

RE:RE:RE:We know some insiders sold

RE:RE:RE:We know some insiders sold Treadnimbly;

Your statement that the potash price will rise is true.  The reality is that we do not know if this will occur within a few years or within a few decades.
Milestone is by far the most attactive potash property in Canada that is in independend hands but there is currently a surplus and if Jensen is turned on in 2020 that will handle growth for the 2020's
One property is surprising.  Vale abandoned a similar sized mine in Argentina a year ago.  They had spent billions on it and they halted development when rampant inflation was pushing the final capital cost up way over $10b.  There is speculation recently that the Chinese may buy this or may be a partner with Vale.  Why on earth would someone spend $10b for an Argentina property when you can get one for under $5b in Canada.  Shipping costs to China would be similar but the Argentia property would have much lower freight costs to Brazil of course.

Still, it would seem that China could pay a billion dollars for WPX and still do well over the long term and with less risk than the dodgy political situation in Argentina.

What are they waiting for?

mat
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