http://asxguru.com.au/Feb 28, 2011It�s interesting and quite...

http://asxguru.com.au/

Feb 28, 2011


It�s interesting and quite amazing to see Fortis Mining (FMJ) rally so strongly, even though the company has not even secured the mooted world-class potash project yet. At the very beginning of February the company announced the securing of a strategic partnership as well as the intention to acquire a world-class potash project. This news was well received by the market and it was something that I posted about on the day.

You can see from the above chart that the stock price has literally gone ballistic. On the day that the news first came through the share price opened at 38c and since then we have seen an almost vertical rally. Today a new high of $1.70 was made and the stock closed slightly lower at $1.69. In just under a month we have seen an almost five fold gain.

As I had mentioned earlier the project still has not been secured. However, a series of very positive announcements have been made and we now know that the potash assets the company is planning to acquire are located in Kazakhstan. The most recent announcement was made last week and it concerned the appointment of a highly experienced non-executive director as well as an update concerning the potash assets.

The update stated that company executives would be travelling to Kazakhstan during the next two weeks to help expedite the due diligence process. My feeling is that the market reacted favourably to this particular news.

The forum members who bought the stock at the beginning of the month and are continuing to hold will be very happy campers.