RE:Mind Boggling to say the leastWell, without getting into a long list of reasons and despite many claims from Robin as a low cost producer it doesn't seem to be the case. Western and Encanto are both below $100. Western now has plans for a pilot plant and if everything goes accordingly to plan has more than enough money to build even if not high grade.
Encanto production is anticipated to be high grade but with a huge capital cost and talks that are not going anywhere they may try to reduce the size. The fact KRN has few outstanding shares is another problem that limits liquidity on a stock that is thinly traded. Also , I am Not sure many are impressed with the company given it was unable to deliver in 2013 and everything else that has happened.
And last KRN's IRR numbers on the potash are FOB Winyard. Everyone else's are Vancouver making KRN's numbers far less attractive without the mag. Right now Western may very well be the first to move forward with a realizable up side from here with an IRR that is at least 10% better than KRN's. I am also starting to mistrust some of their numbers as a result. Western's mine life is 12 years and have not seen any such specifics from KRN.
What can KRN deliver? Magnesium which will be comparable to Western's pilot plant that could triple share for both from here.
A reality that makes doing potash on it's own marginal and why people are waiting to see. Doing both requires more money and lies in GSFC's hands since at a13% IRR, you have a very small margin for error that is calculated on 25 years and certain facts that I am finding conveniently ambiguous to convince people.