dj market talk...... cop that.

0215 GMT [Dow Jones] Minemakers (MAK.AU) up 13% at A$1.97, hit record high of A$2.09,
as price surge continues. While stock market has headed south this year, MAK has surged
10-fold since January. Wonarah rock phosphate project and 4-fold price increase in rock
phosphate price have triggered recent gains. Company has said US$100/ton rock phosphate
price needed for Wonarah economic viability, whereas prices currently above US$200/ton
from US$50/ton a year ago. In its January investor presentation, Minemakers saw strong
medium-term potential for Wonarah, with initial target of 2-3 million tons a year (2% of
world production). Traders should beware profit-taking likely at some stage and market
likes round numbers like A$2.00. But assuming A$100/ton profit on 3 million tons a year,
MAK is trading on a minuscule p/e ratio of about 0.3x. And Wonarah is only one of many
potential developments that cover iron ore, tin & tungsten, fluorite. In longer-term,
Minemakers has scope to get much bigger. (DWR)