agm discussions

Good evening everyone.

Now that I have had time to carefully think through what was presented to us at the AGM today, I feel ready to jot down my thoughts and summing up.

Ananda who chaired the meeting told us about the threat on potash prices from the Russians and that up until then, we had been quite a long way down the negotiating track with someone to climb into bed with us.

Everything went pear shape as did the potash prices which now sit at historical lows.
He said that just as quickly as it changed for the worst, it can turn around and change for the better too. He said the situation was easing and thought that potash prices could soon be moving back up.

Funding for all the drilling is around 30 million and apparently they are fielding daily phone calls from brokers who are happy to take massive placements at 6 and 7c. He repeatedly said that the only happy shareholders under that scenario would be the new ones and reminded us that all the directors were shareholders too. Such placements would NOT be happening!

Another funding option which was completely out of the question was to give up around 70% of our asset by way of a cheap farmout. He hinted that there were offers being made at such numbers and that the board was continuing to try and secure a partner but at much more satisfactory terms.

My friend asked the question about our cash on hand. Ananda said that the big money was only required when we needed to pay the engineers, rigs and all of the stuff associated with drilling. For where POK stands at the moment, we are an incredibly cheap company to run.

So, where do we stand?

Its a bit of a Mexican stand off.

*Potash prices are in the toilet as is our share price.
*The board will not raise money at these prices (thank goodness).
*The company is costing us next to nothing to run at the moment.
*All drilling will cost $30 million which the board will obtain preferably from a farmin partner on favourable terms.
*How do you get favourable terms when the share price and potash price are in the toilet? You don't.

So what do we do?

We wait, and trust that as the Russian cartel is put back in their box (which has or is happening) and potash prices recover. So too does our share price and hence the terms and choices of getting the necessary funding to move towards the PFS and then the BFS.


My friend and I left the meeting feeling a little disheartened but once we'd both thrashed it out, we actually felt much better.
Ok sure there was no sugar with the presentation but the clear message was, "we're with you" and with the massive asset we have we sure as hell won't be giving it away.
All we need is a little patience and an ounce of luck

The stockmarket is a forward looking beast and at the current market cap of 6.8 million our lows must surely be in. Anyone brave enough to enter at todays prices (that the board refuses raise at) and hold for a decent chunk of time, must surely be the proverbial "no brainer".


Gottalove...