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Gold/Mining/Energy : Verde Agritech -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (1425)	8/19/2010 4:59:08 PM
From: TheSlowLane	Read Replies (2) \| Respond to of 16592

Good point about investors needing to find a home for all that cash if/when POT gets taken out.

To: Rocket Red who wrote (1425)	8/19/2010 11:50:44 PM
From: Rocket Red	Read Replies (1) \| Respond to of 16592

Jed's e-mail too Pescod from Brazil He finally has time to e-mail us a comment from Brazil, this is what he writes: “Life has comeback in a strong way to the fertilizer and agriculture sectors. My two favourite companies Amazon Mining and Great Quest Metals have begun to benefit. The catalysts are more macro than the achievement of company specific milestones, though our successful nutrient availability test at Amazon is good reason for renewed investor confidence. Drought in Russia, has prompted that government to halt exports of wheat to ensure the country can feed its populace, with Ukraine threatening to curtail export quotas for the same reason. By 2009 estimates Russia was the world’s third largest exporter of wheat and Ukraine was the 6th largest. To add insult to injury Australia the world’s 4th largest wheat exporter announced lack of rain could reduce their wheat for export by 33% this year. Share prices across the sector have climbed, as savvy investors gobbled up their favourite agriculturally related investments to help them pay for groceries this fall. Prompting the most exciting development of all BHP’s bid for Potash Corp. This is great news for Amazon and our shareholders. BHP was planning to build the largest new potash project in the world, the capital investment a staggering $10BB with production expected late this decade. I see BHP’s bid as an admission that building a new conventional mine is not a feasibly economic way to enter this sector as a major player. Confirming what Bill Doyle, CEO of Potash Corp has been saying all along and our thinking at Amazon, that new conventional potash mines are not good investments, the thinking that lead us to embark on our lower CapEx shorter build time Cerrado Verde ThermoPotash project. I do expect BHP will be successful in acquiring Potash Corp, but they will have to increase the bid. Potash Corp. of Saskatchewan Amazon Mining David Pescod T: 780.408.1750 Debbie Lewis T: 780.408.1748 Fax: 780.408.1501 Page 2 However don’t hold out for a white knight Vale is the only company that has the firepower and appetite to compete for PCS and after the mess their takeover of Inco has caused Prime Minister Harper would be committing political suicide if he didn’t stop a Vale takeover of another major Canadian asset. While investors may be rooting around for the next takeover, the surest way to make money after one these multi-billion dollar pure plays are gobbled up is to position yourself for the back draft created in the Canadian market. Upwards of $43 billion of capital is currently tied up in Potash Corp all of it wants to be invested in fertilizer and exposed to agriculture. After the company is swallowed into BHP a diversified mega-miner most of that capital will be looking for a new home. The purchase of Inco made Sherritt and FNX Mining must have equities for institutional investors across Canada, in the same Rio Algom then Noranda/Falconbride, was a boon for shareholders of First Quantum and Teck Resources. Even more recently Red Back Mining’s merger with Kinross has institutions scrambling for a new exposure to West African gold in names like Semafo, Keegan and Golden Star. At Amazon we want to position ourselves as an emerging potash producer worthy of some of that capital as investors look for