Developing phosphate interests in the Georgina Basin, Queensland, Australia

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posted on Feb 25, 2009 10:32AM

All in all the news is excellent. Now it seems IFFCO will take all 5MT Tons of Phosphate as production is ramped up. The Queensland is going to fast track all licences in order to get people back to work so no problem there. The only thing holding this thing back right now is the crazy market and concerns about the price per ton. Allowing for currencies Australian/US Gutnick says current price oer ton is $100. If I put 2+2 together correctly he seems to be able to get the rock out of the ground for $7 a ton and to port for about $14 by truck & eventually $28 by train. So that leaves quite a margin. Maybe I missed some other cost but they were the two costs he alluded to. He sems to believe that prices are on the floor right now (what isn't?) and will rrecover to $150 plus next year. This seems to be the only issue in which Legend and IFFCO have different objectives. Legend hope the price will go higher while IFFCO hope it goes lower. Fear that IFFCO may have their wish answered is the only thing weighing on the stock price right now. Everything else is right on the money.

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