Agoracom Blog

Breaking News: George Soros Takes 5.19% Stake In AGORACOM Client

Posted by AGORACOM at 5:58 PM on Friday, October 3rd, 2008

Good afternoon to you all. Reuters is reporting that George Soros, via Soros Fund Management, has taken a 5.19% stake (11.7 million shares) in AGORACOM client Legend International Holdings (LGDI: OTCBB).

SCOPING STUDY CALLS FOR $1.7 BILLION IN ANNUAL PROFITS

I am sure that much of the decision to invest in LGDI came when these significant results were released from a scoping study on its phosphate projects in Queensland, Australia. Quite frankly, these are the biggest numbers I have ever seen , the highlights of which are included below:

The scoping study was conducted by British Sulphur, a division of CRU International. They prepared initial project capital and operating costs assuming sale prices for phosphate of US$100 per tonne fob, US$200 per tonne fob, US$300 per tonne fob and US$400 per tonne fob.

In March 2008, sales of Moroccan product at US$400 per tonne fob Morocco were recorded. Phosphate isn’t priced on a daily market like gold or soybeans, so you have to take actual market transactions.

Based on $US 400/tonne:

  • Annual Gross Earnings – $US 1.7 Billion
  • 5 Million Tonnes Of Production Per Year
  • Historically Defined Phosphate Deposits of 1.463 billion tonnes
  • At $300 Per Tonne, Annual Gross Earnings – $US 1.2 Billion
  • At $200 Per Tonne Annual Gross Earnings – $US 700 Million
  • Phosphate Prices Driven By Global Agricultural Demand For Fertilizer
  • CAPEX Of $826 Million To Construct Infrastructure

Given the gravity of these figures, I also think it is important to note the producers of the Scoping Study to make sure it is reliable. The British Sulphur Consultants Division of CRU Group has been the leading business consultancy in the fertilizer and inorganic chemical sector for over 50 years. British Sulphur was the first supplier of information to the fertilizer industry, and remains the largest provider of services to the industry.

LGDI SIGNS LANDMARK AGREEMENT WITH IFFCO, INDIA’S LARGEST FERTILIZER ENTERPRISE

On July 16th, LGDI and IFFCO, announced this landmark agreement.

IFFCO is India’s largest fertilizer enterprise, a cooperative with over 50 million farmers associated with it, primarily engaged in production and marketing of nitrogenous and phosphate fertilizers in India. IFFCO has five fertilizer plants in India with a domestic annual capacity of producing 4.3 million tonnes of phosphatic fertilizers and 4.2 million tonnes of nitrogenous fertilizers.

CONCLUSION

Congratulations to the entire LGDI team for putting together the kind of company that the likes of George Soros believe in.

Regards,
George

4 Responses to “Breaking News: George Soros Takes 5.19% Stake In AGORACOM Client”

  1. LEYE says:

    PLEASE I WILL LIKE TO KNOW THE PROCESSES INVOLVED IN RETRIEVING MY SHARE CERTIFICATE .

    HAVE A NICE DAY

  2. AB in Aus says:

    Hi

    If you like Legend have a look at Minemakers(mak) listed on the asx. Higher grade deposit(big upgrade very soon), legend will have a lower opex than mak(appox $100au/t), but mak has a very low capex(less than 50million) due to existing transport infrastructure. Initially aiming for 3mt/y, stage 2 6mt/y. Low market cap. http://www.minemakers.com.au. Not many quality phosphate startup plays about. Have a listen to a few of the latest presentations. Mak is on a mission to start producing asap with full land holder and government support. Time to production is very important as both legend and mak need to take advantage of these current high rp prices.
    Legend and Minemakers phosphate deposits are both located in the Georgina Basin in Australia which is looking like a potential phosphate hot spot with lots of other juniors suddenly appearing looking for phosphate. Producers shipping from Australia will probably have a $30-40au sea freight advantage shipping to asia over Morocco(which currently have the export rp market monopolised).
    Both companies look to have exciting futures.

    Cheers.

  3. I’ve heard some goody things about this blog. The content has really been useful a great balance of text and pictures.

  4. Eric says:

    GT,
    Great Post on LGDI.
    The iGoogle does gives you a huge leg up for a quick response, as you aptly demonstrated.
    If you havent sent the link to Mordi yet I will make sure he gets it.
    Great demonstration on the power of the web.

    Eric