resourceman

Canaccord Adams Bullish on Fertilizer Companies

Nice coverage of Potash. Glad to finally see a mention of MagIndustries (MAAFF.PK , MAA.V ) a Canadian company. This is the only Potash holding I have, with a nice low entry price of C$ 2.36. They have a 2,265 km2 , 25 year permit in the Republic of The Congo which overlies a massive salt deposit containing carnallite ( magnesium-potassium-ch... ). Proven reserves are 17.9 million tonnes of KCL , with total inferred resources of 1.07 billion tonnes ( 185.9 million tonnes KCL ). The resource is open in all directions and later core-drilling will likely increase it substantially. They plan to solution-mine the carnallite and process it into potash fertilizer in their Potash Plant which starts construction in 3Q08. Initial produstion is planned for 600,000 tonnes/yr , ramping to 1,200,00 tonnes. The plant is only 16 km from West Africa,s best deep-water port , Pointe-Noire , ROC. MagIndustries has already chosen a leading global marketer of Potash and other fertilizer products , Ameropa AG , based in Switzerland , to market all their exports. MAA.V is also planning to construct another plant to harvest Magnesium metal from the same salt brines. They additionally have another Division named MagForestry , also in Rebublic of The Congo, which harvests fast-growing eucalyptus trees for pulpwood log export. They are in the process of converting to wood-chip exports with their new chipmill. Trees are grown on their 68,000 hectare, 50 year permit , with 25,000 hectares still unplanted. If that,a not enough , they have a third Division , MagEnergy , which is in hydro-power and revamping an extensive power network in the ROC which also sells power to the copper mines in Zambia & The Democratic Republic ofThe Congo. This is obviously a buy, wait , & hope investment ,but everything I read about Potash says strong demand for many years.