Re: MAK - Minemakers
Mr Drummond has suggested previously, production of 2-3Mtpa, when it eventually becomes a producer.
At US$350-400/t P2O5, this is worth between US$700m-US$1200m per year for MAK. Thats the sort of income (or more) US/Canadian PotashCorp is earning for each its Phosphate/Potash operations. If MAK were producing and selling at those rates now, how does that rate with a MC of A$203.66m (2.73*74.6m shareholders).
As an interesting point of comparison. I've read on this forum that FMG plans to start production at 35Mtpa. Mr Forrest wants to boost it to 100Mtpa in the near term. Even at 100Mtpa @$100/t that equates to $10bn revenue per year, with a current market cap in excess of $20bn. How does that compare with MAK's MC of $200m, with proposed production of 2-3Mtpa @ $350-400/t or US$700m-US$1200m per year.....
Having said that...have a look at RWD, "The current retail price for SOP is ca $800/tonne, giving the in-situ resource a value of ca $20 billion for Lake Disappointment", they are sitting on a MC of $90.75m...although they are planning to produce at ~200kt/a
and then there is IRC, which holds 13.87% of RWD...
With growing Chinese demand for agricultural products, increasing demand for biofuel which in turn increases demand for fertilizer - and hence phosphate, a circular game, I think that contrary to the above report which shows World Supply > World Demand, there is good opportunity for MAK as a long-term phosphate producer.
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This represents my view. Do your own analysis. I take no responsibility for the actions of others.