Clearly the sp isnt going anywhere without a rise in the current...

Clearly the sp isnt going anywhere without a rise in the current rp price. But with a bit of research its not difficult to see that the rp price is bound for a return to its 2007 levels in the not so distant future, given the situation of;

1. diminishing arable land - arable land worldwide per capita in 1960 was over 1 acre, its now under 2/3 of an acre and uncultivated arable land is only found in significant size in a few places like indonesia. This means the existing farms need to become more productive and there is no substitute in agriculture for phosphate fertilizer.

2. With investment trusts and the like monopolizing ownership of ('currently undervalued') farmland, you will begin to see more of the inflated price of your fresh fruit and veges at Woolies that you saw at the end of the last economic cycle. They will begin to post enormous profits and pay top dollar for MAKs rp.

http://money.cnn.com/2009/06/08/retirement/betting_the_farm.fortune/index.htm

3. Production of rp worldwide has slowed in the last couple of years, particularly in the US as stockpiles are used up. Once stockpiles become scarce in the next 6 to 12 months production will again increase leading to a more current reflection of production costs on the rp price - production costs arent getting cheaper...

So as this situation becomes more obvious to the discerning investor you will see MAK take a sharp turn back toward $2 and beyond.

If I was at the helm of MAK I wouldnt be in any rush to get into production before the demand turns around and as I see it late 2010 will probably be the ideal time. However I don't really think its going to take production to take off before we see a sharp turn around of the sp, 35c seems to have been rock bottom and for that price MAK is looking like one of the best lt buys around.