RE:Thoughts on the MOUon your comments below...
That comes to a total of $242/ton delivered. There are also some potential discounts to this number:
- A US-based direct-ship to farm should be less than $75/ton
- The potential of a second module within the same facility (they are being built to hold 2) would have greatly reduced CapEx (probably would reduce interest cost on that module by about $35/ton) and would also improve operating costs by around $10/ton. That would put Module 2 somewhere around $200/ton delivered.
Ultimately, you’re talking about delivered potash somewhere in the $200-$250 range, not a bad price to lock in for a farmer for the next 40 years.
BTB....where is the profit for GSP on these numbers if the farmer is able to lock in the $200-$250 price???......