I think that it is about time to consider a vertical integration...

I think that it is about time to consider a vertical integration model.

Limited processing of high grade rock phosphate is one way to make hundreds of millions of dollars. But gaining full control of the processing cycle through to selling 5kg bags for sale at an equivalent of $3 per kg wholesale.

The simplest model gives an Enterprise Sales Value (ESV) of circa $200 million on current rock phosphate prices. But if we take control of the full processing and production line then the value add is substantial. We quickly move from US$154 per tonne to US$3000 per tonne which would provide substantial scope to cover the additional costs associated with taking complete control and make even more substantial profit margins.

The extrapolated revenue figures are exceptional and would drive the ESV into hundreds if not thousands of millions of dollars.

Now this might seem unrealistic to some, but l know that Mencel and Chrisp have this firmly on the agenda. I trust that this will be communicated to the broad market soon.