http://en.wikipedia.org/wiki/FOB_(shipping)Razz,Essentially the...

http://en.wikipedia.org/wiki/FOB_(shipping)

Razz,

Essentially the same thing...there are slight differences in the FOB prices depending on the supply location relative to the customer base.

Given that the grade of STB's deposit is lower than most already in production, it is far more sensitive to other factors like MOP price, OPEX and CAPEX.

The results of a scoping study at an optimistic price of $500 should be treated with a great deal of skepticism. Sure the MOP price spiked in 2007 along with every other commodity(from 200 to 600) but there was already so much spare capacity on the supply side that prices corrected rapidly during the GFC despite no real fall in demand.

I would advise STB to cite a much more conservative base case using $350 with sensitivities ranging $100 either way. At least that way they would reflect the true market conditions rather than the rose-coloured variety.

The rise in the floor price from 200 to 350 is simply due to all the extra US currency flowing into the world's economy. As they keep the printing presses going the MOP price will rise with similar increases in OPEX and CAPEX.

Invest at your own peril!!