| It is going to be (price) choppy here on out. Changing the subject. Anyone with some spare time should read about the price of SOP, which is the kind of fertilizer we will be competing against. There is a price disconnect with KCl potash. The latter is going down in price, and the price of SOP is advancing, as more and more farms and ranches need to avoid putting chlorine in their fields. We are at a disadvantage in that our fertilizer, green sand, is only 9% potash, but at least the percentage of the potash that is K is much higher than the percentage found in either KCl or SOP (K2SO4). And we can offer other nutrients in the same bag. I think how well our product sells and at what price cannot yet be easily determined. We are in the right place, we have higher costs of transportation because we have only 9% potash, but the trip is short compared to Russia or the US or Canada. We have lower mining costs and processing costs. I would also mention that the large ($2-$3.5 billion) plant that Vale was contemplating in Brazil died because it was a KCl project and because prices of that commodity have dropped a great deal in the past few years. What that means to me is, with Verde Agritech coming into production, it becomes harder and harder for anyone else to justify a high CapEx potash plant in Brazil, or a nearby country. Verde will soon be getting some of their gravy (too much of it to overcome all of the other barriers to opening a large potash project in Brazil.).Hang tight Sloppy, the ride is going to have a few curves. |
