KP2 Discussion, page-654

Brazil Potash haslisted on the Nasdaq, ticker is GRO, current market cap of USD $527m.
KP2 Kore Potash marketcap currently approx. USD $143.4M




GRO is building a 2.5mtonne plant that will take 4 years to build, but at a higher cost than the KP2plant.

The KP2 contract is ata fixed price, which is significant as more than 80 percent of mining projectsrun over costs by 40 percent. The signing of contracts usually impliesthat financing is to follow – USD$1.93bn.

China Power has builtand run potash plants so has the experience, KP2 has potential to supply more than 8 million tonnes of resource over time vs the 30m tons from all of Canada.!!

Kore Potash’scompetitive advantages not only against Brazil Potash, but also Canadian suppliers are:

- shallowresource depth of 280 meters,

- ahigh average grade of 33%,

- proximity to the coast (36 km), which enhances transportation efficiency andwill costs, approx USD$10 a ton vs more than USD$30 a ton of competitors.

- Marginis around 70 percent, based on the current potash price of USD$340. (many less than half this margin)

KP2 also avoids the expensive and time consuming Panama Canal that all Canadian suppliers need to go through to supply the Canadian market.




Should be trading at multiples of current levels. usual fun and games being played on low volumes with the exception of the broker in the UK that dumped more than 50m units on LSE/ AIM that halted momentum as he expected an immediate takeover offer from BHP.