Macquarie 45, page-2

Yes bella, it is the most advanced Potash stock in Australia and likely to be the first into production.

Agricultural stocks are being widely predicted amongst the larger funds to be outperformers in the next couple of years, and a couple of the larger ones have shown glimpses of this since March.

Arable land is shrinking, and becoming more valuable, and being tilled for greater quantities of produce. Populations are increasing, some are exploding, and the Potash price is holding up well and has not been as volatile as other commodities.

Australia currently imports 100% of it's Potash. The Corona virus pandemic has shown us that we need to rely more on ourselves for all our products (to some extent), if we can, and I think this intention will feed through to the Potash sector in the coming years.

I think Potash (may) be a good trade over the next year, and have also dipped my toes in here, especially given the miscalculation of capex. I see it as something of an opportunity.

It's also best, given the current world economic climate, and the fact that we are approaching tax loss season, to be moderate, and lower the risk somewhat, and buy in smaller tranches, as I've done recently with SXY at 15c average, and SO4 at 33c average, and DCN at 32c average, and some others, the rest being mostly gold stocks, though I'm open to any commodity.

What investors should also study carefully is the initial capex of projects. Although the world seems to be awash with money printing, much of it is directed at saving individuals and small businesses with handouts to survive COVID-19, and conversely, the banks seem to me to have been very careful and conservative with putting large funds into projects, at least, that's my opinion, but I know others may disagree. I see some good projects, in commodities that are in demand, but banks are balking at funding those over half a billion to a billion dollars, even though the economics of the projects may stack up in terms of NPV and IRR. I do know of a couple of companies with projects that some banks like, the capex is $600 million, but the banks have asked them to do more digging, find my resource before they will consider putting in anything like that amount to fund a small cap. I'm watching them.

I bought an initial tranche here at 15.5c, and will watch closely for other potential bids.

I'm not too worried about this stock reaching 45c as likely in the short term, but I'd suggest a bounce to the 30c level after the new shares are filtered through is possible, even within 3 to 4 months, certainly a buy at 15.5c with a target sell of some shares (to lower your average and risk) from about 28.5c should be a trade worthy of the moderate to intermediate risk I think.

Tax loss season may slow this down a bit, but let's see what happens.

Gw