Ashwil,Thanks for reply - though it does serve to highlight the...

Ashwil,

Thanks for reply - though it does serve to highlight the difficulties in calculating the actual price - posters seem to be very quick to throw out figures of US$250/t.

You have indicated the following:

Russian high grade (82-85% BPL) is US$200-220/mt CFR.
Moroccan (79% BPL) is as high as US$320/mt FOB

Obviously, and unsurprisingly, freight rates, location, and seasonal issues play a large part in the equation – as will quantity and whether a contract or spot sale.

The above do not make sense unless destination is also included – otherwise you would always acquire the Russian high grade if they are delivering a higher grade (79% BPL) at a substantially lower price to a lesser grade that is to be picked up at Port.

And then both options, by my calculations, equate to much higher P2O5 values than the 30% figure quoted for the MAK DSO.

If we take the lower figure of US$200/mt cfr of BPL, I am calculating – perhaps incorrectly as I am on uncertain ground here, would appear to equate to US$150/t cfr of the quality P2O5 that MAK are indicating. The higher figure of US$320/t fob Morrocco equates to something more in the order of US$250/t.

So yes, I can understand the price is firming – I find it hard with these figures to quantify the MAK equivalent. And I am not down ramping – am just trying to understand.

Though I remain concerned about the management conflicts inherent in the takeover proposal.