Re: From Monday's update..jb & others
in response to
by
posted on
Jun 30, 2014 09:31AM
Focusing on the Dallol Potash Project in Ethiopia
Good analysis Wounded... One thing for sure Allana has taught patience... The biggest curve ball to this project was the Russian fall out. No one saw this coming and it killed all potash junior momentum. Most potash juniors are not feasible below the $350 range. Allana on the other hand still looks very profitable and it became clear that she stood out from the other plays. Unfortunately the appetite for potash juniors had dwindled since the Russian fallout and we have seen little interest as evident by the other potash juniors.
Now we see some strength in there potash market with pricing moving higher and potash granular material becoming short resulting in changes to planned shut downs by one of the potash majors.
A entering market will bode well for Allana IMO... The deal with ICL is done but valuation should increase with stronger potash prices. The other question remains is will a stronger potash market attract other offers for the project?
The other question I have is we are seeing a delay with the financing from what was originally expected. Will this delay coincide with a strengthening potash market... Could this have been planned by the lending institutions to see the direction of the market??
With debt financing now planned for fall to early winter, the question remains.... Will we keep this timeline or push it back once again?