OK here we go. Feedback from RBS Morgan's today...
Tony Lawry said they are in talks with 6 big name companies currently. Negotiations are quite complex. He said that he couldn't say whether a deal would be struck next week, next month or even next year but they are definitely talking to some BIG companies.
I'm not sure if TL actually said what comes next or this is my sources spin from here. The company would need to have a minimum market cap of $500m. They would look to shore up a deal to supply a third party with fertilizer for say for 30 years where LCK gets a percentage of income and the returns were indexed somehow. Personally that sounds like an example for one of many potential deals that can be done.
Back to TL talking about the percentage of fertilizer that Incitec Pivot supplies to Oz (going off memory now) but it was tiny leaving plenty of room for LCK to pick up the slack. 150 million tonnes of fertilizer used in Australia annually from memory.
All told, stating the obvious this is the next huge catalyst for the stock but he just can't give a time frame. The important points were there are 6 potential partners and negotiations were complex (as you could imagine).
LCK Price at posting:
28.5¢ Sentiment: Buy Disclosure: Not Held
