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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: hank2010 who wrote (25224)	1/21/2005 11:46:47 PM
From: Taikun	Read Replies (1) \| Respond to of 313686

<And lack of roads in Canada's north is a problem. Ya can't go east or west or south to get to Ft. McMurray!> That's the point! It isn't just the regular haulage costs it is the congestion. Anyway, when you're selling Limestone for $210/ton and haulage is $5 or $90 (see presentation) you can see who is going to make outsized margins, BMD. Besides, the Province doesn't want lime from Montana since they see trucks clogging up a tight road system. Therefore Syncrude and others will be contracting with BMD to make the Province happy. <But there has got to be some a lot closer> Currently Quicklime comes from Banff 500mi. Muskeg Valley is 40mi, and right in the center of the major oil sands projects (did you see the map?) By the way, Quickline can't be stockpiled, it has to be delivered realtime. If you find a bigger, closer limestone mine further along than BMD I'll sell my BMD immediately. By the way, this is a real mine, in production very soon, next to the oil sands which will receive $60bn+ the next 8 yrs. I'm sorry you can't see the potential of this mine's 65yr resource at 11m tons/yr.