WESTERN POTASH CORP T.WPX

Wpx-china , krn-india

[amhb]

RE: Wpx-china , krn-india

"Not sure how anyone can compare the 2 given the financials for starters...."

This is a very simple comparison:

presuming: 30% equity - 70% debt

KRN - Capex $600 Million
WPX - Capex $3,300 Million - Most likely higher at K+S level (4.1 Billion)

KRN 30% = $180 Million
WPX 30% = $990 Million = Almost a billion $

KRN $180 - $75 = $105 million needed
WPX $990 - $32 = $958 Still almost a billion dollars needed

So which one would be easier to finance? I pick KRN.

[Cacheitup]

If the analysts and Wpx's management are right and milestone does cost the same as the K&S Legacy project to build then the calculation would be something like this. Cost - $4.1 B On a debt to equity of 70/30. $1.2 Billion in equity that would need to be raised. So taking the recent equity raise price of .71 cent as the raise price, they would need to issue 1.69 Billion shares, which would