WESTERN POTASH CORP T.WPX

Re, Re,Re,Re,Re: mineral rights

[northmark]

We are not talking billions here we are talking millions. Finding potash in Saskatchewan is not the hard part it's mining it. These mines are expensive.
BHP Billiton bought Athabasca Potash for 341m and K&S bought potash one for around 440m so Western being about the size of potash one I would think $1.80 to $2.00 would be in the ball park for a buy-out.
Keep in mind these buy-outs happened when potash was fetching $500 plus a ton and if I recall they needed a minimum of $400 a ton for payback alone.
Then there is Potash Corp right on your door step that could bury any greenfield with cheaper and massive capacity.
Having said all that, this is still one resource that I will always own.

[blackwood2002]

Northmark, I would agree on valuation of roughly 450mm as Pot 1 was almost identical to milestone in most aspects. I would venture to guess that would be a floor price balpark given FS of WPX puts it as one of the cheapest if not the cheapest cost per ton to mine on the planet at around $67/t to mine. Potash corp is almost 2x that cost ! The best thing going for WPX is despite recent softening

[Cacheitup]

sorry, but their are major inaccuracies in this post. while I agree with the valuation in a buyout scenario of between $300-$450 M there is no way Wpx can be profitable at $300, let alone $200 Wpx  has an opex of $108.76 plus transport costs of $59 brings them up to $167.76(see their feas below) While they do have decent opex figures they are nowhere near the cheapest on the planet as

[koczka]

""The miner, who took an interest in potash in 2011 after partnering with North Atlantic, sees ” higher nutritional standards, population growth and limited arable land make potash a critical factor in maintaining global food security, and a natural complement to RTM’s existing borate fertiliser business.” North Atlantic’s CEO, David Waugh, explained that if a three

[blackwood2002]

Oh I'm sorry catchit. Did I say FOB costs? Inclusive of interest payments?  No. Sorry to confuse you. You can go compare those numbers if you like and report back. Feel free to tell all of us what FOB is vs. competition and prove me wrong that WPX hasn't a dramatic competitive advantage. As FS stated IRR at 18.9% with 5.6 yrs pay back at $450/t where do you think they get the spread

[Cacheitup]

no you didn't say FOB price but you clearly stated that they would be making money at a $200 potash price which if I am not mistaken is false. Or do you not want to admit that what you wrote was false. you wrote- "If not the cheapest cost per ton to mine on the planet at around $67/t to mine. Potash corp is almost 2x that cost ! The best thing going for WPX is despite recent softening