I had not considered the possibility of capital intensity, that's a good point Sevo, as is the question about resource base - size & shape - which will potentially influence their ability (APC's that is) to sustainably pump over the longer term. I also baulk at the suggestion that it will coost them $34/t to truck their product the ~1,100km to Geraldton. AMN & RWD's numbers were about $90 to $100/t I think.
I agree that this industry is opaque - it is very difficult to get a good understanding on what each company is doing operationally to arrive at such different capex & opex outcomes. Of course the valuations are further muddied by highly varying macro-economic assumptions. RWD seems to be the most conservative, I wonder what the other projects would like with their price & other assumptions?
You are also correct that farmers need to apply more SOP than MOP to get an equivalent amount of K into the soil, which, I have read, makes SOP the most expensive source of K on a cost per unit basis, but it has other advantages as all the potash companies on the ASX have pointed out.
SO4 Price at posting:
79.0¢ Sentiment: None Disclosure: Not Held
