broker recommendation

Minemakers (MAK)

We are starting to see a sharp downturn in demand for phosphate products as a result of the global credit crisis. MAK is still quoting prices of US$450-to-US$500 a tonne free on board from Morocco. While this may be the case right now, the next round of price negotiations will almost certainly see a sharp fall in the price of phosphate. The MAK operation was always going to be high cost, and with little chance of raising the $1 billion of capital expenditure required anytime soon, this project is going nowhere fast. For those still sitting on a 300 per cent gain prior to the initial phosphate announcement, we recommend you take your sizable profit.

Brett Walker
STATE ONE STOCKBROKING