Great day! I thought after yesterday's sell off in the afternoon, albeit on light volume, we may have visited the low 30's again.
I think there are two reasons why people would buy today. 1. End of the road with the public comment peiod but more importantly final go ahead provided by BLM to K20 to say "the land is yours to drill" is getting closer and closer
2. Potential JORC following the approval. I think to milk the benefit of having news flow, management will declare a small initial resource estimate and then follow up with a larger one once the 4 holes are drilled.
Like clockwork the price always rises prior to the quarterlies in anticipation of the two points above being answered. This time around we are in the quarter where the real progress is to be made so management will likely discuss this.
Whatever said and done, I think the main issue for me is the quality of the resource. With both ELM and STB, it is really first class and can be economic in normal market conditions. I have no doubt that people who are pro-growth, which the US is looking to be to maintain the momentum in their economy would welcome projects with both arms open. But for this baby to really get off the ground, it needs some really stunning drill result to put to bed the theory this is a barbie doll potash resource. They say an exploration target of 3-5 billion tonnes, but I say we need great grades.
I am really looking forward to this quarterly and the next 6 weeks.
GLA!
POK Price at posting:
43.0¢ Sentiment: Hold Disclosure: Held
