quarterly report analysis

MAK is in the sweet spot but are waiting for RP prices to rise. The DSO Feasibility study is due to be completed by the End of March with final figures on OPEX to be provided. Prices will need to rise further for a comfortable operating margin. This suggests the OPEX is $110 and not good enough for a massive boost to the underlying SP at the moment.
Responses so far on the test work DSO have been encouraging- looks like the RP is good quality. BPL is calculated at 79. That is some of the highest BPL I have seen quoted. Low impurities and Iron+Aluminium is 1.5% which is much lower than most required specs- Max limit is 5%. Cadmium is less than 5 ppm- awesome levels and hugely different to Morrocco.

TOs to sign agreement in 2nd Quarter.- Looks like this part is dragging a little.

Commencing mining is still slated for beginning of July- I think that will be a little ambitious by 2-3 months.


"Encouraging discussions with customers need to be translated to sales" Helllo!!!! Thanks for the obvious comment AD. Perhaps you could add 'we need to dig a hole to mine Rock Phosphate'

EIS submitted. No great problems of note.
Permitting expected to be completed by the end of June.

Mine Start up is dependent on MAK share price


-My take---- MAKs SP is in the toilet due to the overly large raising in 2009 and now trying to raise further capital at this point will only punish the stock. They are waiting for published RP prices to rise and boost the stock or get a tentative contract for RP with defined profit and then do their cap raising to finish off the project. It is a solid base report without any bells or whistles.

No magic bullet for the SP here. Nice graph on the rise in DAP and comment on the RP price of $120 per tonne but they are obviously hanging out for a few months of higher DAP leading to higher RP leading to higher MAK SP prior to cap raise.