Gensource Potash Corp AGCCF

Happy New Year everyone.

[mdjbrown]

2024 should be a very interesting year for Gensource and the other horizontal selective solution potash mining juniors in Saskatchewan.

Will current global potash prices support hundreds of millions in funding thrown at at unproven mining tech by deep pocket investors for these juniors or will they demand proof of concept after years of hype and promotion by these juniors.

Look no further than WRX, as I believe they are now up to $250 million spent on a mine that is not producing, and it appears they are now reworking the most important aspect of their entire mining operation - the caverns. 

Do deep pockets scratch their heads asking why this technology was not 100% proven economically viable before the $200 million dollar plus Milestone phase 1 production facility was built?

World sanctions levied on Russia and Belarus showed that the two largest countries in the world by population who rely heavily on potash imports will continue to buy discounted potash from the "bad guys" regardless of global condemnation, which proved to be a pretty significant equalizer in combatting high global potash prices cosidering how far they dropped.

Also, with BHP moving quickly to have 4 million ton phase 1 production humming along at their flagship Jansen project, in 2026, it doesnt leave much time for these juniors to become relevant before a significant boost to global potash production will undoubtedly affect the supply / demand equation..........  

Should be interesting!

[Miner77]

I highly doubt BHP will have any potash out of the ground in the next 5yrs. It's been over 10yrs since they started sinking their shafts and they still aren't done lining them. They still have to do the lateral development and build a mill.

[mdjbrown]

Should be very interesting going forward M77. BHP hopes to be producing by the end of 2026 and it does not appear that they are shy throwing funding at the massive project, so I guess we will have a better idea as to progress in 2026 There are also several other potash projects globally that are in various stages of construction in addition to BHPs Jansen mine, added as well to Nutrien and

[oldsalt72]

The one wild card in Saskatchewan that could affect expanded potash production is the remarkable drought that is being experienced in western Canada. Diefenbaker lake is at record low levels as well as flow in the South Saskatchewan River. The existing potash mines used 90,000,000 cubic meters of water to produce 14,200,000 tonnes of potash in 2020. That is 6.3 cubic meters (or tonnes) of water

[mdjbrown]

Very interesting take oldsalt72 Do those same drought conditions limit fertiliser purchases by the farmers as well, especially if irrigation is prohibited in order to conserve what little water remains? Heres hoping for enough snow and early spring rain to replenish the lakes, rivers, and reserviors, or it might be a really long summer for those in the agriculture industry, especially in the