$4 club, page-3

Just another Valuation (with the thinking)

http://www.scotiacapital.com/English/bns_econ/bnscomod.pdf

Spot potash prices (FOB Vancouver) continue to rally in Southeast Asia and Brazil, rising to US$370 per tonne in November from US$351 in October and a low of US$342.50 last Fall. BPC is looking to settle contracts with China by January. Potash producers will likely take care to limit overseas price increases in the first half of 2011 to accommodate buyers and not derail this year?s big rebound in volumes. India has cut its potash fertilizer subsidies for 2011, though we think India will have to lift its potash price expectations as 2011 unfolds.


Valuation.
I am going low ball on everything
Using original lower target of 300mt
Potash Price of $250 USD and assuming AUD parity
grade 10%

Resource marketable value = 300 Mt x 10% x $250
= 7.5 Billion
Inground value lets just say its 5%. (i said low ball)
= 375 Million
Now all options are in the money that makes it 100 million shares on issue, or $3.75 per share.

Even on this valuation method we are still undervalued (ie not nickel included)

Just for the hell of middle of the road valuation.
on 500MT at $320 per Ton USD
15% grade
100 million shares

thats 24 billion tale IGV as 5% it comes to 1.2 billion or $12 per share.

The $12 includes no Ni, and assumes the word shallowest potash has no allure, nor any strategic value.

I see a take over taking place by $10 as the big players who ever they are (BHP + Potash miners) dont ever want to pay full price for anything.