Ann: BSOPP Feasibility Study Complete - New 120ktpa Base Case, page-58

Have had time to look at the announcement in full. I don't think the allocation of $45million for an additional 30kt can be defended. If the potash price tanks, it could well be a capital destroyer. I'd much rather see them stick the the current production figure of 90kt, iron out any operational hiccups, get some cash flow & then if markets are favourable revisit the expansion. It's the worst time for infrastructure builds, the price of everything (esp labour) is off the dial & rising. Financial execution risk is increasing. I can see many potential problems & little extra reward for the proposal. I do not think the RvR is favourable at this time as costed for the expansion. Sentiment decreases to hold