TSXV:EPO.H - Post by User
Post by
go.faster@ymail.comon Apr 11, 2017 9:37am
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Post# 26105618
Speculation...
Speculation...Next Steps will be :
AFW updates project valuation model
Strategic Partner commits $X million for X% of the project
High level endorsement from Ottawa
Encanto is sold to 'one of the big boys'
Yes...I believe all this ends in Encanto being bought. Why? In a commodity market like potash...market share is crucial as throughput is the key metric for driving unit costs of production down. The mine will still be built as the new owner will be contractually obligated to fulfill the promises to MFN. The new owner will then build a mine of whatever size they deem appropriate and then off load production to other mine sites to balance throughput and drive costs down.
The big boys cannot afford to lose 10% of the global market share. They will buy EPO to have controlling interest in the project.
This is pure speculation!!! But honestly...can any of you see Daskos operating a mining company? He's a deal maker and will be off to his next deal. Not judging here...it's all good.
C'est ci c'est ca