RWD – Reward Minerals
Article from The Age…
A few days old……but still nice to see BHP and Reward Minerals discussed in the same breath….wishful thinking perhaps….
____
“RISING living standards in the boom economies of China and India not only gets translated into higher prices for base metals.
It also gets translated into increased food consumption, which, by extension, means that agriculture needs to become more intensive through the increased use of fertilisers.
That’s why BHP Billiton, of all companies, recently flagged its interest in looking for a world-class potash deposit in Canada.
Potash is the common term for fertiliser forms of the element potassium (K). While it is common (seventh) in the earth’s crust, finding a commercially payable deposit is something else.
As BHP begins its Canadian hunt, a little-known Perth explorer, Reward Minerals, is well down the path. That was reflected in the group’s share price more than doubling in the past two weeks, from 41 ¢ to Friday’s 84 ¢ a share.
The reason for the surge was simple enough ”” the company reckons that its Lake Disappointment potash deposit could contain as much as 27.37 million tonnes of sulphate of potash (SOP).
SOP is a major source of potash in fertilisers and at present sells for $632 a tonne, which means that Lake Disappointment might be anything but a disappointment.
Australia alone imports $200 million of SOP at the retail level.
____
The article quotes 27.37mn tonnes at $632 per tonne….the problem here is that most calculators do not have enough digits in the display to work that one out…..so according to The Age – makes Reward’s JORC worth $17,297,840,000 or $288.30 per share fully diluted share or $393.13 per share undiluted…in situ of course…..but that is in situ at / or near surface and in Australia…
So valuing RWD at 5% of an in situ JORC…..well you work it out…
EB
