If NUP can get product to Darwin for total costs for less than $100 i will eat my hat. NUP could have a resource bigger and higher grade than MAK and LGDI combined its irrelevant if it costs too much to get it to port.
Nobody can get funding for a downstream fertilizer plant not even Gutnick and his LGDI which has now taken the DSO option. Therefore its all about who has the cheapest and lowest CAPEX DSO. All the Australian plays are stranded out in the Georgina basin which means it becomes all about logistics. At the moment I think that LDGI is the best of the Australian phosphate hopefuls (plans to ASX list, currently not on the ASX). It has similar logistics to NUP in terms of distance to rail (130km) however the resource is much larger and with a strip ratio of 1:1. I think the NUP DSO will have a strip ratio closer to 1:3 to 1:5? The market cap looks to be similar to NUPs but Soros has just dumped his 10% stake in it so who knows if its good value.
NUP Price at posting:
2.5¢ Sentiment: None Disclosure: Not Held
