what we've been waiting for...

Sometime today (or possibly tomorrow morning) we'll see the results of the Pro-Met scoping study on Transit's Utah potash project.

The timing couldn't be better, with Goldman Sachs yesterday advising that fertiliser producers are a "buy", and reports of big players "scrambling" for projects.

Local investors have been alerted by Robin Bromby to the Transit announcement, so there should be a few watching this tightly held company.

Three days of good sp action after the permit granting will be followed by another very interesting few days - assuming the study is positive.

The nearest comparison of planned production of potash by solution mining at present is the Potash One project in Canada, and they have been valued by the market at C$200 - C$400m in recent times. (Currently C$226m)

Here's the market info on Potash 1:


Stock Symbol TSX : KCL
Shares Outstanding 77,132,424
Fully Diluted 102,234,486
Avg. Daily Volume 410,421
Price Range Low $0.70 - High $4.80
Market Capitalization $226 Million
Cash on Hand $42.6 Million


Will be interesting to see how the Oz market values the Utah project, which is quite similar in size and planned operation.

One big difference is geography. In solution mining, evaporation of water from the brine to produce the solid KCl is a key part of the project. The Utah location is a huge advantage. High temperatures and very low humidity in the Paradox basin will significantly enhance the rate of production, compared to similar operations in Canada (and/or will save huge amounts of energy).

Will be an exciting time for holders.