mak in the oz

Criterion

http://www.theaustralian.news.com.au/story/0,25197,23843953-23634,00.html

Minemakers (MAK) $1.72

STILL on bolters, we got on to this phosphate hopeful at 56c in January and it zoomed to a $2.95 high on April 18. The stock was lashed by 22c, or 11 per cent yesterday after the company admitted that a 2 billion tonne JORC-certified resource at its Wonarah deposit near Tennant Creek might not be so compliant after all.

Is it all a misunderstanding because of a poorly written release? According to BBY analyst Andrew Sullivan, the downgrade relates only to a peripheral part of the deposit.

The firm assumes a 20-year mine life, based on a compliant main deposit of 72 million tonnes at an average grade of 23 per cent.

With the country's biggest undeveloped phosphate resource, Minemakers has been riding the same fertiliser boom as Incitec Pivot. The difference is that Minemakers is yet to produce any of the coveted nutrient. When it does, Minemakers can claim to be a more politically correct source of the stuff than the main supplier, the Morocco-controlled Western Sahara. Speculative buy maintained.