in order for the project to be viable, someone needs to fund the logistics to the port - whether that is a JV partner or someone who buys the whole project - and the ability to fund the "get to port requirement" is directly related to the margin on the actual phosphate. The higher the margin the more they can pay to get the product to market and still be economic (after funding the necessary capex). So the value of Highland Plains to GIB is directly related to the price of Rock Phosphate (obviously not the only issue). At some price, the feasibility will show a healthy return - that will vary based on production volumes. Without a redone feasibility we won't really know but there must be a price where it becomes a very attractive project. Don't know if that's close to US$200/mt or a long way off
GIB Price at posting:
8.5¢ Sentiment: Buy Disclosure: Held
