Compass reported 2017 sales at $870 tonne up 6% from 2016. Still...

Compass reported 2017 sales at $870 tonne up 6% from 2016. Still waiting on their last qtr though. At those prices sop producers will probably enjoy margins over 50% which gives them a lot of room to move in terms of output and what is actually feasible. For eg I think LD and many of the hopefuls could run at a comfortable 250Ktpa and still have ebitda around $80m - $100pa. Compass is currently operating at 260 ktpa.

I think one day if the Australia sop industry gets going you will see a major like K+S try and consolidate operating projects...prior to that though various companies will take stakes in the projects as the risk reward is high at the start up stage.