.....a guy with a clapped out old car, talking it up to convince himself its still roadworthy.
"There's 200k miles on the clock but the guy at the garage says they dont make engines like that anymore. Its good for another 100k !. I'm pleased for the guy across the road about to take delivery of a brand new Ferrari. As car owners, we will have a lot in common".
Despite the sentiment, offer him any price for it and he'll bite your hand off ! Sooner rather than later though, it will be obsolete.....especially when the neighbours gather round to marvel at the supercar.
Jonah Weisz of HSBC, asks Stefan Borgas ICL CEO about the prospect of competition from SXX. Borgas welcomes the competition. He might be having a bout of cognitive dissonance as surely an old mine cannot compete with a new state of the art facility.
They are producing 120/150 thousand tons of Poly this year (up from 40000 last year) ramping up to 1 million tons. Once production is ramped up he thinks their cost per ton for Poly will be £30/£35 per ton (currently £70/£80 per ton).
That's prospectively low cost Poly.
They are selling it now and it sounds like Poly could be the saviour of Boulby as they've run out of their current resource.
"Okay. Let me ask Kobi to answer the tax question. On polysulphate, the base principle is we price all the nutrients as in the replacement value for the particular farmer. To remind you the nutrients are sulphur, about half of the content, potash (K2O)12% and then magnesium and calcium. Not all the farmers are able or willing to pay for all the nutrients, so sometimes you only price three, sometimes you only price two, sometimes you price all four of them. In some specialty crops you get additional synergistic effect from yields, so we get a premium for those. There's a difference of course between granular and powder. We are producing about 55% granularand about 45% powder,that's what comes out ofthe mine naturally. So we need to balance both of those. The powder goes mostly to NPK producers and of course they are looking for lower cost because they need to put this into granules themselves. The total cost in the long run will be somewhere between £30 and £35 per ton. They're higher now of course because we're in the ramp-up phase. Prices we're getting for the mix between granular and powder at the moment is around between £70 and £80 per ton. I think as volumes will go up and we will move more into commodities you would be able to see prices go down so that this spread is not a long-term spread but still it will be a very good, very robust business going forward. "
Prices seem very low, are they after Opex has been deducted? Ramp up is higher so maybe they are Opex costs?
Stefan Borgas: " If there's a new player coming into this it will be two of us offering this product and that would be fantastic. That would be great. So I would very much welcome Sirius to build this mine and to also help us to develop this product."
Oh the hypocrisy of the CEO of ICL to come out with that statement now after all that's come to pass.
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