RE:baystreet talks about Vatic if you don't see it #2 Vatic Ventures (TSXV: VCV)
Vatic Ventures is a little company that is hoping for a billion-dollar discovery—and the target of its aim is potash.
Yes, potash! This substance could be one of the most important commodities on earth, since it’s a crucial ingredient to fertilizer production.
Without potash, food production would stall, and many people would go hungry. With the global population set to hit 9.8 billion by 2050, potash demand is sure to rise in the coming years.
The price of potash has firmed up in the last two years, and now it sits around $225 per ton. The price is expected to increase in 2018, and Vatic is hoping to meet Asian demand from its new property in Thailand.
Thailand has what some consider the world’s largest untapped potash reserve—a colossal potential of 908 million tons, worth $206 billion.
Vatic’s property in Thailand could be part of that deposit.
The company has a host of advantages working in its favor. Thailand is close to major centers of potash demand—Southeast Asia, China and India, which all have to import potash from Canada or Russia.
Demand in Southeast Asia is 4.25X local production, requiring huge imports and opening up a big opportunity for domestic potash producers.
Existing nearby Thai potash can be produced relatively cheaply, with deposits sitting only 350 meters below the surface (as opposed to other deposits that can be as much as 1.9 km deep, especially in the West), while cheap labor and excellent infrastructure should allow new players like Vatic to produce any potash they discover at their project at a $60/ton discount—undercutting the competition.
According to the USGA, “Global scarcity is not the issue with potash—transportation costs are.”
And Vatic has that problem solved: its potash exploration property is at the center of the action, close to markets.
The little company with only a $4.7 million market cap is led by a management team with decades of experience in Thai mining.
It’s set to begin drilling exploration of its Thai property in May 2018—which means the prospects of Vatic could change in a big way in a matter of weeks.