TSXV:EPO.H - Post by User
Post by
marketmover1on Jan 07, 2017 2:41am
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Post# 25678383
This makes no sense
This makes no senseI can see encanto making a deal for an offtake with India to supply them with potash from their mine production but this deal to set up a trading company to supply 5 million tonnes of potash a year makes no sense. Why would India use a middle man to buy potash? Say 5 million tonnes a year at 200$ per tonne translates to a billion $ a year. So if they pay encanto a 5 % fee that would equal to 50 million $ a year. Makes no sense especially when India is known for their shrewd deal making ability. Unless I'm missing something I classify this as "it sounds to good to be true". And therefore it likely is to good to be true.
Love these meaningless MOU's though. Makes for great day trading opportunities. Made a few g's with a few clics of a button when the news came out.
GLTA
MM1