Jim Richards has been with POZ a hell of a lot longer than 8...

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iwik.cazna

211 Posts.

16/07/16

15:15

Post #: 18285704
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Originally posted by usc75 ↑

A P2o5 Dream That Will Never Fly?

Ponder the following:

POZ have been trying to "flog" their Highland Plains Rock Phosphate Project for 8+ years!

Long time prior to Jim Richards taking over.

IMO, here's why the Highland Plains Rock Phosphate Project will not fly:

* Geology: The Resource estimate is Inferred. So, very much yet to be Proven.
* P2o5 Level: Again, much more work-and expenditure-needs to be undertaken, Even so, at 16% it's a product that is not in world demand.
Fertilizer manufacturers required min 30% P2o5...preferably 32% upwards. So it requires Beneficiation...and that's very expensive.
* CAPEX: somewhere between A$300m to A$350m
* OPEX: first, rock phosphate has to be extracted and transported to NT Port. Very limited work, and expenditure, has been undertaken to-date; most in-house "guesstimates" done long time ago. IMO, it will prove to be too expensive.
* Diamond Joe Gutnick & IFFCO JV: With all their expertise, connections and money neither one could make their Project fly! Wonder why?

Summary: IMO, if Jim Richards can pull this deal off-and get the money in the bank-then he deserves an AO.
And if P2o5 pay up, believing they can sell the rock phosphate and make any money, then they will get the ultimate Gong!

Interesting times ahead. Alas, IMO not for either shareholders....

DYOR

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Jim Richards has been with POZ a hell of a lot longer than 8 years mate ;-)

POZ Price at posting: 3.6¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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