Some very good posts from others while I was in suspension for posting images of a broken record of all things! A very big thank you for whoever was responsible for moderating me and suspending me because I made a very large profit day trading MTH on Friday which finished up 80% on the day. That makes me realise I should spend a lot less time debating with a few here, who know how to waste a lot of time spamming the same old things.
While Redbarron and others contributed with some very good posts, I'll add the following.
Last year, a massive phosphate deposit was discovered in Norway. “The discovery of phosphate in Norway may be the environmental feel-good story of the year in certain circles, but it’s not time to break out the good champagne just yet. That’s because the path from discovery to market adoption is never a straight – or fast – one.”…“But it’s going to be at least a decade before this discovery bears fruit, and companies need to function, at least in the short term, under current market conditions.”
At least a decade before a phosphate deposit that has ALREADY been discovered will bear fruit.
Then there is this from Minex Consulting; “Depending on the commodity, only 50-70% (by number) and 60-80% (by contained metal) of discoveries turn into mines, and the average delay period has blown out to ~20 years.In other words, it is getting progressively harder and slower to turn a discovery into a mine.”
So another company has applied for an exploration license in Angola. It hasn’t even made a discovery yet. IF they make a discovery AND it is shown to be economically viable, it is possible that it could take at least 10 years to develop it. This is meant to be competition for Minbos? Minbos has a big head start and has a DFS showing a project with very high margins from a VERY high grade deposit that already has its mining license. Much more likely, the “competitor” will either be a customer of Minbos if that want to add phosphate to their current urea plans, or probably much less likely, they could make a buyout attempt of Minbos, for a much faster route to getting a supply than the ten plus years it could otherwise take even if they make a large enough discovery of their own.
