August 28, 2008
CIBC REPORT: "THE RACE IS ON TO RAMP UP CAPACITY..."
By Guy Bennett President, Q1 Publishing
CIBC says this run is not over...not by a long shot.
Buried deep in a recently released 70-page report, analysts at CIBC, Canada's 4th largest bank, state:
"With the lack of announced greenfield projects needed to match growing demand in the next six to eight years we believe the race is on to ramp up capacity, to take advantage of current potash prices of US$1,000/t or more." |
CIBC goes on to detail the now all too familiar macro-fundamentals that have made potash into the top story so far in 2008. This is great news for Potash One (TSX:KCL), who were one of the earliest movers into potash.
Potash One secured its prospective potash land package in 2005, long before the fertilizer story started attracting all the "hot" money moved into the sector. Potash One's early mover status has put it on course to take its 330,000 acres of solution mineable potash deposit and compete right alongside the big boys.
Potash One's deposit sits right in the heart of the world's most prolific potash mining region, Saskatchewan's Potash Basin. Potash Corp. (TSX: POT), Mosaic (NYSE: MOS), and Agrium (NYSE: AGU) all have significant operations in the region.
Potash One has got a lot going for it. But most importantly, Potash One is developing a solution mine. That is the key and I'll explain why in a moment.
By now I'm sure you're familiar with the global agri-boom story...
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