Phosphate Australia Market Cap @ 20 millionCash: Net financing...

Phosphate Australia Market Cap @ 20 million

Cash: Net financing cash A$3.6 million

Assets:

*Highland Plains has a JORC-compliant inferred resource of 56 Mt at 16% P2O5.

*The Western Mine Target Zone, a sub-set of the global resource, contains a JORC-compliant inferred resource of 7 Mt at 23% P2O5.

MAK Market Cap @ 84 million

Cash: Net financing cash A$42 million

Assets: I'll just take Wonarah:

The Main Zone Deposit currently consists of a JORC compliant 969Mt at 19% P2O5 and the Arruwurra Deposit 136Mt at 17% P2O5.

Conclusion

A much larger tonnage of shallow, high grade material is required for any project to be NPV positive at current DAP fertiliser prices.

For MAK - The initial DSO production will be Arrurruwa because of its shallow depth and low levels of deleterious minerals and elements. It has high grade (at least 30% P2O5) and an aquifer capable of producing sufficient water for mining.

Although the Arruwurra resource is likely to be less than that at the Main Zone, its relative shallowness should allow for cheaper mining costs and reduced capital
expenditure due to a reduction in pre-strip mining.

Because of the current low DAP prices the above reasons will provide planning flexibility and economy. The Arruwurra will allow mining over the shallowest and hence most cheaply mineable parts of Arruwurra to provide an early cashflow which could then provide for the pre-stripping of the larger, but deeper, Main Zone mineralisation.

MAK with tonnage 15X size, better grade, extra $38million in cash, and they have Arruwurra, which will be 1st mine to provide + cashflow, gets my vote.