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Gensource Potash Corp V.GSP

Alternate Symbol(s):  AGCCF

Gensource Potash Corporation is a Canada-based fertilizer development company. The Company is focused on developing resource opportunities with a specific focus on potash development. The Company operates under a business plan that has two key components: vertical integration with the market to ensure that all production capacity built is directed, and pre-sold, to a specific market, eliminating market-side risk; and technical innovation, which allows for a modular and economic potash production facility, which demonstrates environmental leadership within the industry, producing no salt tailings, therefore eliminating decommissioning. Its projects include Tugaske Project, Vanguard Area and Lazlo Area. The Vanguard Area is 100% owned in central Saskatchewan, located 170 kilometers (km) South of Saskatoon, 150 km North-West of Regina on a provincial highway system. The Lazlo Area is located in central Saskatchewan.


TSXV:GSP - Post by User

Comment by bobbythebakeron Mar 23, 2021 9:41am
366 Views
Post# 32857179

RE:RE:Gensource Announces Completion of NI 43-101 Technical Report

RE:RE:Gensource Announces Completion of NI 43-101 Technical ReportYep, it also seems to me GSP utilized this release as an understated way of signaling Euler Hermes general support of the project, even if not official or specific yet.

 

I also was a big fan of this sentence:  "The next steps for implementing the Project include finalizing key financing activities and establishing the project joint venture company, both of which are underway and nearing completion at the Effective Date of this report".   Sounds to me like news is not so far away.

 

And I agree that construction maybe a bit further off than some imagine, with construction coming “later this year.”  3Q sounds about right to me.

 

Most intriguing to me was the 17.59% final after tax IRR .  I’m not one to be coy, but I would suggest readers here look into that number, as my math appears to imply a rather nice net income out of Tugaske, not anywhere close to being fairly value by today’s market cap.  The only reason I hesitate to show my math here is I often get this stuff wrong, and I don’t want to put out misguided info.  Those better/smarter/stronger than me are most welcome to post their math here to weigh in on my assessment.

 

Generally speaking, I loved the release, not withstanding the OpEx cost going up around $12/ton.  I honestly was shocked to see it have little impact on trading yesterday.  Reaffirms my thinking that, aside from current shareholders, few know or care about GSP….yet.

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