OK.
* Geology: The Resource estimate is Inferred. So, very much yet to be Proven.
----Inferred is plenty for a bulk commodity like phoshphate.
* P2o5 Level: Again, much more work-and expenditure-needs to be undertaken, Even so, at 16% it's a product that is not in world demand.
Fertilizer manufacturers required min 30% P2o5...preferably 32% upwards. So it requires Beneficiation...and that's very expensive.
----POZ does have areas of 30% at Highland Plains and other areas over 20%, but some simple benerficaition will be needed and this could be as easy as rough screening.
* CAPEX: somewhere between A$300m to A$350m
----Maybe, If they have to build a pipeline yes capex will be fairly high. But there are two possibilites here a cashed up IFFCO and/or using Century's pipeline and infrastructure.
* OPEX: first, rock phosphate has to be extracted and transported to NT Port. Very limited work, and expenditure, has been undertaken to-date; most in-house "guesstimates" done long time ago. IMO, it will prove to be too expensive.
----Not if they use a slurry pipe line, either Century's or IFFCO build a new one.
* Diamond Joe Gutnick & IFFCO JV: With all their expertise, connections and money neither one could make their Project fly! Wonder why?
---lol. hasn't got much money now, and it was only half the project. POZ's half is the best half and JR wasn't giving it away for nothing.
Summary: IMO, if Jim Richards can pull this deal off-and get the money in the bank-then he deserves an AO.
And if P2o5 pay up, believing they can sell the rock phosphate and make any money, then they will get the ultimate Gong!
----Assuming P2O5 are IFFCO basically, why would they even bother entering the deal if they weren't going to follow though. Atleast going it basically alone they don't have another Joe screwing them.
POZ were never going to get this project up as a major owner, but for someone with big $$$ and possibly nearby someone else with infrastructure it a whole differnet matter. It's about the closest Australian deposit to the coast so imo development is a possibility.
For me I've held this that long now, I'm holding to see how this pans out, it's the most excitement this stock has seen in years. Why have you even bothered posting all that if your not interested ?
Expand
