I think they will have to secure some of the MOP domestic market to make it work, you have to remember SOP costs more for a reason it is a superior product it's not just priced higher for fun, with everything from as the price margin between the two things is lowered the demand will also grow, market share will grow as they lower the price they will find the correct balance.
I also don't see the problem with $100 mill capex with $600kt SOP, I see other resources that work off of similar margins 4-5 year payback and get financing, I agree I would like to see a bigger plan as the resource so far supports one, but I disagree the current plan is somehow critically flawed, I see current plan as good and a big production profile as better, but we shall see it's potash people aren't going to stop eating anytime soon, so I think demand will always be there.
They have $6mill, if they want to go bigger they will go drill more holes, for the market cap it looks good to me.
APC Price at posting:
8.3¢ Sentiment: Buy Disclosure: Held
(20min delay)
