Ann: TRANSIT ACHIEVES CRITICAL PERMITTING STEP FO, page-22

re: Ann: TRANSIT ACHIEVES CRITICAL PERMITTING... I'm an understated person mna :). Oh, and btw, great to see us get past 43c roadblock and options have now doubled from yesterday. Happy days!

Just thought id rehash a post from a couple of months ago to show any changes since then. Brackets after point refer to changes - sorry I dont have the skills to use colour like Nev on Cudeco forum (I do have the skills for long-winded posts tho). Full details about current market cap can be seen in second point...

- Led by a man (Richard Monti) with close ties to Andrew Forrest. “Richard lead the team that built a 1.8 billion tonne resource base of nickel and cobalt through efficient and innovated resource definition and low-cost acquisition programmes. He also generated the iron ore project for Fortescue Mining in the Pilbara region which has developed into a 2 billion tonne iron ore resource”.
(this has not changed)

- Market cap at under $10m with only around 30 m shares on issue most of which held by top 20
(market cap now $13.6 million, shares on issue have not changed tho dilution will occur with most options likely to be exercised on Dec 31 @ 25c. Assuming all are exercised then cash reserves rise by $2.5 million but market cap at 43c goes from $13.6 m to $18.2m, still very low I think most would agree)

- Directors (mainly Ceccon) have been buying consistently in past few months
(still seem happy to buy - no selling)

- Just announced scoping study to be completed by end of year
(almost there now)

- Estimated resource target of potash is 2.5-3.8 billion tonnes at ave grade between 19 and 28% (cut-off used was 20%) tho it should be noted this needs to be proven up. Has been signed off on by a reputable company that works with the likes of Vale, Rio and BHP however.
(resoure hasnt gone anywhere)

- BHP on the look out for potash companies and Brazil and China are pretty interested in boosting their stocks of the commodity
(add to that my recent posts re: BHP and potash. That is, they are on lookout for emerging potash companies with large resources rather than buying a producer)

- Close to key Intrepid Potash deposit in the US (proven area, good infra)

- Location in the US no doubt assists, with US market and Brazilian market so close
(dont think its moved):)

The issues: - Need gov approval
(first step checked today and all signs are good - read todays announcement)

- Funding: potash mines are not cheap. Despite this, if they have half of what they think then the big players will be climbing all over them to get a piece of the project IMO.
(no change to this)

To quote cucucu from HC:
“Potash One C$220 million, with 852 million tons inferred resource;
Athabasca Potash Inc C$148 million, with 424 million tons inferred resource.
... and Transit with potentially in excess of 2 billion tons inferred resource just quietly sitting here with a market cap of $6million!!!” (It’s almost $14m now…)

For those wanting to do their own sums: potash goes for around US$460 per tonne (based on recent deals) - but analysts expect this to rise as food security becomes a major issue and fertilisers get used more.

"Potash is scarce, supply is tight and greenfield expansions are expensive and ... quite lengthy."
- UBS analyst

And I reiterate, please DYOR and good luck all!