An increasing wave of interest is forming around a $62 million market cap potash company out of Toronto that has yet to sell an ounce of its core product.
IC Potash (
TSX:T.ICP,
Stock Forum) stock had drifted in 2013 as investors waited impatiently for a feasibility study to be released that would determine whether the company had a future with its Southeast New Mexico sulphate of potash (SOP) project.
That
study dropped six days ago and, while ICP shares initially dipped marginally upon its release, they have climbed every day since, ramping up 24.1% in six days, with analysts shifting the company to a ‘market outperform’ rating.
FT.com’s
consensus rating on the stock has it as a BUY for two analysts, an outperform for another, and two more for a hold, with a median price target of $0.90 – a 150% premium over the Wednesday close price of $0.36.
IC Potash is a 100% owner of the Ochoa Project, which the feasibility study projects will have reserves to produce 714,000 tons of premium-priced SOP for at least 50 years.
SOP is a more in-demand potash product, and one that has held up in price even as base potash prices dropped over the last year. According to IC Potash CEO Sidney Himmel, the company has traditionally seen a 30% mark-up on the commodity.
Himmel is on the finance trail, looking to fund mine completion so the company can move quickly into production. Environmental permits are expected mid-2014.
FULL DISCLOSURE: IC Potash is a Stockhouse Publishing client