Good morning to you all. I’m proud to announce that our newest client – Legend International Holdings (LGDI:OTCBB) released significant results 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.
As of yesterday’s close, Legend has a market cap of $US 433 Million.
View the entire press release here.
View the Legend Int’l HUB here.
Regards,
George
[…] caught the attention of markets 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 […]
[…] caught the attention of markets 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 […]
[…] 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 […]