My opinion for what it is worth. The low price of potash as it stands today is actually a benefit for ELM based on the the excellent grades and Opex per ton Mop of between $68 and $91. Added to that the financing over say five years.
A very viable project without doubt.
Lets look internationally, we are seeing more costly producers either moth balling and or closing down potash mines because at these prices they are not viable. There is a shaking of the trees and the bad apples are falling out. Of benefit to ELM, yes.
One also must take a view of potash prices. The current price is the lowest for many years, but will it remain there? What is the forecast two to five years out?
ELM to build a mine at Kola and get into full production will take some three years from now. What will the pricing be then? This is just Kola. What about the other two excellent projects at Dougou and Yangala?
Many companies are investing today for tomorrow. The likes of the York project, Highfield Minerals, BHP.
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