Satimola has been trying to raise $100m through IPO for sometime. It postponed an Oct 2010 IPO till second quarter 2011 when potash was running very hot. You need need to ask why.
Get your primary school atlas out and look at the terrain between Kazakhstan and China. Work out how much it costs to transport bulk commodity through those mountainous terrain. Here is a clue. Allana estimated it will cost $25/t to transport potash to a port 600 km away across easy terrain.
The deposit is in West Kaz,as the crow flies, it is 3000km to the Chinese border and at least another 2000km to the rice bowl of China. That is a minimum of $250/t without taking into account the winding mountainous terrain, if you can indeed get through.
That is why FMJ has been trying to keep this location a secret. It does not want to give people time to make an informed decision. But, now forced by ASIC to release some information, and rightly suspended by ASIC.
Potash is hot, AGR paid $60m for a low grade 12%KCL 1500m deep deposit in Brazil. How much can FMJ afford? Not much, and it does not matter because the deposit is cheap. And it is cheap for a reason.
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