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Itafos Inc V.IFOS

Alternate Symbol(s):  MBCF

Itafos Inc. is a phosphate and specialty fertilizer company. Its businesses and projects include Conda, Arraias, Farim, Santana and Araxa. Conda is a vertically integrated phosphate fertilizer business located in Idaho, United States with a production capacity of over 550 Kiloton (kt) per year of mono ammonium phosphate (MAP), merchant grade phosphoric acid (MGA) and ammonium polyphosphate (APP), and approximately 27kt per year of hydrofluorosilicic acid (HFSA). Arraias is a vertically integrated phosphate fertilizer business located in Tocantins, Brazil with a production capacity of approximately 500kt per year of single superphosphate (SSP) and SSP with micronutrients (SSP+). Farim is a phosphate mine project located in Farim, Guinea-Bissau. Santana is a vertically integrated high-grade phosphate mine and fertilizer plant project located in Para, Brazil. Araxa is a vertically integrated rare earth element and niobium mine and extraction plant project located in Minas Gerais, Brazil.


TSXV:IFOS - Post by User

Bullboard Posts
Post by Psalm9012on May 15, 2015 11:02am
275 Views
Post# 23732736

Inherent Value of Itafos SSP Plant

Inherent Value of Itafos SSP PlantOne way to garner an appreciation of what the Itafos plant is worth is by the financing deals struck to build it. Through a syndicate of underwriters including Canaccord, BMO Capital Mkts., and National Bank (GMP, Paradigm Capital and Raymond James jumped on board later on), the following bought deals took place during construction: 1) Jan. 2012 - 13 million shares @ $2.70 each for $35.1 million; 2) Aug. 2012 - 7.5 million shares @$2.70 for $20.2 million; 3) Jan. 2013 - 10.1 million shares @ $3.40 for $34.5 million; and Apr. 2013 - 23.5 million shares @ $2.20 for $51.7 million (all Cdn. dollars). All the overallotments were soaked up by these underwriters at the time as well. These bought deal financings were book ended by bank loans to complete the plant construction. The company appears to have been very prudent in issuing new shares only when valuations were high and securing loans otherwise so as to not become too dilutive to shareholders. Too bad they were not as effective in managing the rest of the operation. Nonetheless, I think we should see a sizeable chunk of that money returned in a buyout. Greg
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