I believe a question we should be asking ourselves is: are there any potash juniors out there - that for whatever reason - seem to stand out from the crowd?
Amazon Mining (TSX: V.AMZ, Stock Forum)
AMZ is a mineral exploration and development company founded by Brazilians in 2005. The company is focused on the development of its Cerrado Verde project. Cerrado Verde is the source of a potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product.
The combination of acid soils and torrential rains in Brazil reduces the efficiency of traditional chloride based potassium because it dissolves too quickly.
“The low concentration, slow release fertilizer is a perfect combination for Brazilian soils. Verdete is the best alternative source of Potash for Brazil.” Professor, Institute of Mining Engineering department of UBC & Amazon’s Technical Advisor
One in three workers in Brazil is employed in agriculture. Brazil has the world’s tenth largest GDP, 24% of which comes from agriculture - yet Brazil only produces 10% of its current potash needs. Brazilian soils are generally poor in potash. Their leading exports - sugar cane, soy beans, coffee and corn - all require potash rich environments. The Brazilian government would love to see potash produced locally, so the Cerrado Verde project is being fast-tracked at the highest levels of government.
“If they can demonstrate that this source is more efficient in terms of providing nutrients that the plants need and can absorb and that the cost is reasonably constrained, this company with a current market cap of $50 million or $60 million will become the linchpin for a multi-billion dollar agricultural industry. A company like this will end up being absorbed at a much higher price than its current $2 trading range.” John Kaiser, Kaiserbottomfish.com
Brazil is a country that wants and needs potash - Amazon is definitely going to attract attention and capital. |
