RE:RE:INCREDIBLE!!!Magritte - As always you find and provide very useful information. The article sizes things very well and wasn't about to dispute comments made on this board with as much detail. With the challenges the sector is facing and at current potash prices, who is going to step up with the balance of the money?
i have been saying it for as long as this has been listed and has hit a new low. Until they sort out all the money and start construction, this stock has nothing to support it. Given that some idiot who will remain unnamed said they would start construction in 2012, without any plans no less.
Let's hope management is getting closer, but wether that will be this month or in a year no one will say until it is done. Then the next set of possible problems will be getting it done without too many delays because then it becomes a cash flow issue and will be all leveraged up with no cash until they deliver and generate income. At least then they will have become what we call a "Going Concern" as long as they are not drowning in debt.
Add someone who is prepared to invest for the magnesium then away you go. However, at the current rate it will take 3 to 5 years since they are still evaluating markets. Fortunately I do not see the Indians walking away. They want this done. You just need another partner to fill in the gap. They paid a lot of money so that they do not have to buy inferior grade from Russia.
Last I heard they were stil in talks. The dips today are because of market pressures. As a short term play it will clearly be frustrating because you can't time it. Never say never because it could go down more in this market. There has not been any big positive news and price increases in potash prices to India are only expected to move up to US$350 /mt for 2015. Will consumption increase to support current capacity or will it languish?
Either way, you probably have a better chance of winning the lottery than this being sold for cash or buy back shares. Announcing a share buy back has to be announced and would get a short term pop and will never happen. The day they strike a deal the price will be a lot more than cash. Unfortunately, they take time and not breaking down the doors.