Share
7,080 Posts.
lightbulb Created with Sketch. 526
clock Created with Sketch.
10/10/19
18:39
Share
Originally posted by Dysprosium:
↑
I had not considered the possibility of capital intensity, that's a good point Sevo, as is the question about resource base - size & shape - which will potentially influence their ability (APC's that is) to sustainably pump over the longer term. I also baulk at the suggestion that it will coost them $34/t to truck their product the ~1,100km to Geraldton. AMN & RWD's numbers were about $90 to $100/t I think. I agree that this industry is opaque - it is very difficult to get a good understanding on what each company is doing operationally to arrive at such different capex & opex outcomes. Of course the valuations are further muddied by highly varying macro-economic assumptions. RWD seems to be the most conservative, I wonder what the other projects would like with their price & other assumptions? You are also correct that farmers need to apply more SOP than MOP to get an equivalent amount of K into the soil, which, I have read, makes SOP the most expensive source of K on a cost per unit basis, but it has other advantages as all the potash companies on the ASX have pointed out.
Expand
A recent announcement by RWD, that was subsequently revised at the request of the ASX, points out some differences in the assumptions used in the financial models. Read the SO4 BFS with a very open mind!