The state of play at the moment between STB and its most...

The state of play at the moment between STB and its most relevant peer with respect to the resource location/size is given below..

1. ELM - $310 million - Indicated Resource of 362Mt @19.48% K2O and Inferred Resource of 442Mt @19.57% K2O. Market cap is $272 Million.

2. STB - $136 million - Measured Resource of 133.70 Mt @ 17.55% KCl, Indicated Resource of 343.33 Mt @ 17.38% KCl and Inferred Resource 87.37 Mt @ 24.96% KCl. Market cap is about $116 million.

Grades are enormous with ELM (as its K20 vs. KCL) but you gotta expect the market will pay some attention to the size of this upgraded shallow resource for STB.. If the market does not react to this not sure what is needed to take us back to above $2... Maybe UN Security Council calming down over the regional instabilities (and driving down sovereign risk perceptions) or greater love for potash (similar to the time when BHP's bid for Potash corp was in the works) or maybe greater risk taking coming back to the mkt.

We can see that Lory is doing all he can to give the share price a small boost.. The last few announcements were quite positive in my view - monetising part of the asset via a partial project 'buy in' by the Eritrean government (although mandated by law) is a strong sign this project should be taken seriously. Nevsum had no problems during the process with their Bisha mine so that's a good read through for STB. The project financiers would see this as a positive too.

If we see the total resource(measured, indicated and inferred) be upgraded to above 1 billion, which is a little under doubling the resource, this is another good step (in the right direction).

Hoping we can see an upward bounce next week..