just to clarify, DNK sold all its share in the Eritrea resource (the other 50% was owned by the locals). It was sold to a Chinese company Sichuan Road and Bridge Group, which we could assume would have sufficient ties with the CCP to negate some/much of the risk around unrest in the african nation with other belt and road spending that could have already occurred in country. (I sold my DNK shares months ago based on the risks)
The future (discussed) diversification of commodity markets (east v west) should benefit SHP trading into the european market with a lower transportation cost from the other big western supplier, Canada (with BHP in the wings with their massive canadian resource as well).
If DNK gets going, even with their massive resource (and what I have read easily mined resource), you would assume most of the product would be heading into eastern/central Asia the middle east and not compete with our SHPs markets.
Our only problem is the SHP resource is mostly MOP, without further refining, its not SOP, the more valuable potash product. But quantity is sometimes as good as quality
SHP Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
