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Re: STB - South Boulder Mines

Some food for thought guys taken from "The Australian"

May 05, 2008

BACK in December, somewhat ahead of the rest of the crowd, we started to talk about investing in fertiliser components -- potash and phosphate -- as the world needs more and more food.

The latest development in this story is the announcement from China last week that it will clamp down on exporting fertiliser. With food prices rising 21 per cent in the first three months, the Beijing bosses are trying to make sure fertiliser prices don't rise and hurt its farmers due to supply problems at home.

Potash Corp of Saskatchewan is now one of the top five companies listed on the Toronto exchange -- its shares have risen by around 50 per cent so far this year. Ten days ago, Denver-based Intrepid Potash listed on the New York Stock Exchange and its shares shot up 58 per cent on the first day of trading. It has a market cap of $US3.3 billion. The second-largest producer in the world is a Fortune 500 company, Mosaic Co, valued at $US54 billion.

Potash prices have nearly tripled in the past two years, so it's worth keeping an eye on the local start-ups -- but with the caveat that they are only taking the first step on a very long journey to production.

Orocobre (ORE) has a lithium project in Argentina, but potash could be a lucrative by-product. First sampling has begun. Reward Minerals (RWD) has reached agreement with the Martu people in Western Australia for the development of the Lake Disappointment potash project, while South Boulder Mines (STB) has acquired three potash and phosphate properties in that state.

Another caveat: a warning from Merrill Lynch economist David Wolf that potash may just be another bubble. One sobering fact he cites is that the combined valuations for three North American producers -- Potash Inc, Mosaic and Toronto-listed Agrium -- is bigger than all the potash sold in the world for the past 100 years.
 
Re: STB - South Boulder Mines

Go Nuke said:
Some food for thought guys taken from "The Australian"

May 05, 2008

Potash prices have nearly tripled in the past two years, so it's worth keeping an eye on the local start-ups -- but with the caveat that they are only taking the first step on a very long journey to production.

Another caveat: a warning from Merrill Lynch economist David Wolf that potash may just be another bubble. One sobering fact he cites is that the combined valuations for three North American producers -- Potash Inc, Mosaic and Toronto-listed Agrium -- is bigger than all the potash sold in the world for the past 100 years.
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Go Nuke,

Thanks for posting that rather candid and interesting commentary on the sector. I'm not really a rock phosphate boy myself, so I feel like a bit like a fish out of water on these threads :eek:.

I was wondering if anyone had access to some reliable data indicating the potential lead-in times to production for these types of deposits?... :topic Sorry, I know not particularly relevant to the STB thread, but important nonetheless.

Not really my type of stock, as Kennas mentions the influx of spec money into the sector is a little concerning imo (aka uranium :confused:), but I wish everyone luck.

jman
 
Re: STB - South Boulder Mines

Ouch taking a beating this morning.

Anyone know the reason? the clarifications on the announcement for may 6th??

Potash prices?? :S ==''
 
Re: STB - South Boulder Mines

Another 1m dumped - but no buyer depth this time. Nothing has changed - just more information.

Pump when opaque, dump with clarity. Happened in Feb as well. However more is known now so not sure why the stampede for the cliff face?

Read comments above. In terms of STB -
1. it ain't just a potash play - it is nickel, gold, potash, phosphate, listed equities.
2. the past is not a good indicator of the future given prices have quintupled, population is booming and diets are changing.

I do agree with much water to flow under the bridge though. No different to any other spec miner out there.

Wonder why the clarrification? Maybe people read last ann as mining within the next few months?

Anyway proves once again that 'other investors are hell' especially at the spec end of town ;)
 
Re: STB - South Boulder Mines

Bushman said:
Pump when opaque, dump with clarity. Happened in Feb as well. However more is known now so not sure why the stampede for the cliff face?
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Guess you were right ~

Vultures coming back in to pick up the bodies and left overs.....

Back up to 27c
 
Re: STB - South Boulder Mines

Bushman said:
30 cps is holding despite another 1.6m shares sold by profit takers.

Volume yesterday plus today is approx 6.5m shares above 30 cps. That is 15% of the free float which is a good base for a bottom.

Simple mathematics dictates that:

Free float = 45.3m
Less Top 20 (50% holding) = 22.65m
Less Trading prior 2 days = 6.5m

Equals about another 16.1m shares not traded. Are these holders of the 16m in for the longer term or not? Will the profit taking be capped at 6.5m post announcement?

Not sure obvioulsy but I suspect that it should hold high 20's, low 30's as long as the buyers don't take their bat and ball hiome. I like these excercises as it puts the trading you see in perspective.
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Interesting viewpoint. If you also include the selling of the prior week and the 2+ million shares traded today, I think it could be a case of 'flushing out' investors by putting downward pressure on the share price and causing their emotions to get the better of them and sell to those who are looking to consolidate at lower prices.
 
Re: STB - South Boulder Mines

kennas said:
Cracking 30 was very important there IMO, releases it from that 2 month trading zone. Maybe if it tests that level now as support and moves up we can be more confident in an uptrend continuation.
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So much for 30 support! :( Hopefully the 25 ish level holds out.

Must have just been reaction to the ann, which if so, looks overdone. Of course they need to go through the same process everyone else does when you want to mine heritage land due to sacred trees and ponds. In the end, the power of the $ will make it happen.

While I think poo prices are bubbling, they will still stay high for some time underpinning the future of these poo players. All this spiking and dumping is just the natural tendancy for these types of stocks and investment environments.

:2twocents
 
Re: STB - South Boulder Mines

STB back to where it was a few days ago before

0.295 - up about 28% today ~ its probably gonna get a speeding ticket ~

But - yai topping up and consolidating at the dip.
 
Re: STB - South Boulder Mines

Nothing like a positive investor update (Commsec) to stimulate the SP again.

Another good day on the market coming up!

How long before we get another hit?
Whoops, wrong topic, off to imminent market correction thread.
 
Re: STB - South Boulder Mines

ColB said:
Nothing like a positive investor update (Commsec) to stimulate the SP again.

Another good day on the market coming up!

How long before we get another hit?
Whoops, wrong topic, off to imminent market correction thread.
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I like this company because it is good in keeping its shareholders updated.

In saying that, there should be a few anns coming up relating to negotiations with traditional land owners concerning the Cardabia project as per the project schedule in their investor update...see attachment
 

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Re: STB - South Boulder Mines

Really riding the bandwagon here, which is good darts as far as I'm concerned. Not sure how long it will last. They need to start getting some rigs from somewhere and producing some results...

NEW CARDABIA PHOSPHATE PROJECT TENEMENT
South Boulder Mines is pleased to announce that it has further strengthened its position in the fertiliser sector by applying for an additional exploration license that forms part of the Cardabia Phosphate Project.

The existing Cardabia Phosphate Project has been expanded with the addition of exploration license application E08/1864 which is immediately adjacent to the existing license applications.

The project now comprises 4 contiguous exploration licence applications E08/1850, E08/1855, E08/1856 and E08/1864 covering approximately 1,466km ² of prospective phosphate bearing stratigraphy within the northern
Carnarvon Basin of W.A.
Click to expand...
 
Re: STB - South Boulder Mines

kennas said:
Really riding the bandwagon here, which is good darts as far as I'm concerned. Not sure how long it will last. They need to start getting some rigs from somewhere and producing some results...
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Couldnt agree more Kennas.

My biggest worry is that this whole agri/fert thing is just another bubble and in a years time everyone will have forgotton about it.

While it is good to see STB management getting a number of licences under their belt, drilling is what will make or break them, the sooner it happens the better, while the sector is still hot.
 
Re: STB - South Boulder Mines

Interesting trading with this one...had a bit of a run yesterday to 0.29 then came straight back down...seems to have found support around 0.26 level.

The market not paying any dividends in response to the ann yesterday it seems...?
 
Re: STB - South Boulder Mines

Spineli

I really like yesterdays ann, especially the image/map of Cardabia,

The project area is very large and I can see at least 3 10km x 10km squares with what appeasr to be sporatice 15%-25% Phosphate

The bottom line is Cardabia has the potential to host a Multi Billion Tonne Phosphate depsosit at grades of 15%-25%

THE KEY WORD THOUGH IS POTENTIAL


Anyway I have attached an image of the orignal Cardabia map/interpretation and the latest, its is clear that the company's knowledge of the project is growing
 

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  • New Carabia.JPG
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Re: STB - South Boulder Mines

South Boulder Mines (ASX Code: STB) is pleased to announce the details of a capital raising which will raise AUD $2 million via a placement of 6.4 million shares at an issue price of 31 cents. The funds raised will be used to advance the company’s move into the exploration for potash and phosphorous “fertilizer” minerals and advancement of the Duketon Project.

The placement consists of two tranches, “Tranche 1” of 4.3 million shares with a 1 for 2 free attached 2 year option with an exercise price of 50 cents raising approximately AUD $1.3 million immediately. The second tranche “Tranche 2” will require shareholder approval and will consist of 2.1 million shares with a 1 for 2 free attached 2 year option with an exercise price of 50 cents raising approximately AUD $0.7 million.

South Boulder Mines welcomes the support of Sprott Asset Management (“Sprott”) in participating in the issue.
Integral Wealth Limited (Toronto) acted as Lead Manager to the Placement.
Click to expand...

New Announcment out today 2:22 ~ Interesting... Price back up to 30c

Any thoughts?

Good luck all - have a great weekend :) [away from the market]
 
Re: STB - South Boulder Mines

I think the $2m is great. It will greatly bolster their cash reserves and facilitate "rapid advancement of its exploration portfolio" .

What do you all make of the management / board restructure?
 
Re: STB - South Boulder Mines

The only Poo stock doing well today. Up 10% at the moment. Haven't seen it go past 0.32 in a few weeks. Support forming around 0.30/0.315 level.
 
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