Encanto Potash Corp V.EPO.H

RE:RE:RE:Patience

[bettindahouse]

Agreed. However, I continue to focus on the point that the macro picture for potash needs to improve to allow projects like ours to blast off. If it doesn't happen in Q4, I believe 2017 should be a big rebound year for potash producers as a whole. Assuming the merger goes through with POT and AGU, I'm hoping it pushes Russia-Belarus to join forces again and then we are looking at a much more favorable outlook for the per ton price of potash. At that point, our feasability study would look tremendously better (that's the only reason I can think of as to why a company with big money behind it keeps waiting to check that box) and we could see multiples similar to that of 2011 when Encanto hit $.60, only we would be much more derisked at that point and probably flirt with $1.00.
 
Investors still believe Western Potash's Market Cap is worth double to that of Encanto's, and it's because they are looking at the current per ton price of potash as a challenge, and of course our project is still a higher risk at this point.

Investors need to see the price per ton of potash (as well as wheat) rebound back to favorable conditions and feel confident in the long term outlook for potash as a whole, and then they will once again see projects like Encanto's as huge cash cows resulting in large multiples in our valuation. IMO, in a healthy marco environment and post feasibility study, news of the trading company, offtake, etc. is what takes us from around $1 to much more.