delays in project avoids asian demand

It is a pity that Indigenous Energy in its 31 March statement is not really keeping to the statement where it says they will do everything in our power to accelerate project development. Shareholders must be frustrated at delays especially when the story below shows opportunites

Potash fetches record price as Asian demand grows
Some buyers pay $1,000 per tonne for Canadian product
Reuters
Published: Thursday, July 17, 2008
WINNIPEG -- Canpotex, the export marketing consortium for Canadian potash miners, has raised its spot price for some Asian buyers to $1,000 per tonne, an analyst at J.P. Morgan said on Wednesday.

The new price is up 21 per cent from current delivered values, and will take effect in the fourth quarter, David Silver wrote in a note to clients, quoting fertilizer industry consultant FMB Group Ltd.

Silver said the price hike would boost earnings for Potash Corp., Mosaic Co. and Agrium Inc., which jointly export potash under the Canpotex banner. "We believe the rapid rise in offshore potash prices will put increased pressure on importers in India and China ahead of their upcoming negotiations for new supply contracts later this year," Silver wrote.


High price of potash will boost the profits of Canadian mining companies.
David Stobbe, Reuters, Files

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Font:****Earlier on Wednesday, Belarussian Potash Company said it sold 40,000 tonnes of potash to Sri Lanka at a record price of $1,050 per tonne. The BPC consortium exports the mineral for Russian miner Uralkali, and had earlier hiked its spot prices to $1,000 per tonne, effective July.

Fertilizer prices have skyrocketed because of record prices for grains, fueled by growing world consumption of food and biofuels as well as depleted stocks.

As of June, spot prices for potash exported from Canada had climbed about 200 per cent from a year earlier, according to data from Potash Corp., the world's largest fertilizer company. Potash Corp. said last week it would increase its U.S. prices by $250 per short tonne, which J.P. Morgan's Silver estimated would make the price $772 per short tonne, an increase of 48 per cent.

China, the world's largest potash importer, is paying about $660 per tonne (delivered) under a contract that expires later this year -- about triple its 2007 price -- and India, another major buyer, is paying $625 per tonne.

Silver said he expected higher prices would boost earnings per share by $1.90 for Potash Corp., 90 cents to $1 for Mosaic, and 60 cents for Agrium.