Guys, Young Trader over on ASF is on this too. From reading the...

Guys, Young Trader over on ASF is on this too.

From reading the posts, here are the three important points for reward that i gather:

1) The project economics were based on a potash price of around USD$400 a tonne SOP VS Current prices of over USD$800 per tonne SOP.

2) The economics are based on production estimates of 200,000tpa. As the image shows, once production is ramped up to 400,000tpa as the company have highlighted profitability will be significantly enhanced. It will more then double. This doubling of production is required to meet Australia's domestic demand requirements.

3) The company is very tighly held with close to 50% held by the Exective Director, and been the only potential potash producer in Australia, is of extreme strategic importance to the Australian industry, people and economy.


Based on points 1 and 2 - ie, the doubling of potash price and doubling of forecast production, RWD stands to make a net profit of $110mn per year which equals $2 per share.