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Based on the facts that the massive increase in sales in Jan / Feb was before the approval of KP Fertil and the terrible events in Ukraine which have affected the fertilizer market I just can't see the increase to 200,000 tons being enough. Even with the sales predicted internally for the rest of the year the sales will hit 180,000. I can't even imagine how many farms/companies will now order will the mapa approval and others who will have been looking around to use alternatives due to the high costs.
This is surely only going 1 way. I think they will have to expanded to 300k ASAP and it really shouldn't be that difficult or expense, the process is the easiest I have ever seen. More people, more trucks, more diggers. Surely if it is a smooth process then storage should be an issue as they can dig, crush, truck and start over again!!
No doubts some of the 30K is farmers deciding to advance order rather than just get it when they needed it to take advantage of a pre inflation price rise which BM stated they would be doing
Wonder how many could do this and if it is practical? cost, storage issues etc but yes some would have done it I would imagine.
everything is in Harvests favour. Just can't see this train stopping. I believe the forward PE is currently around 4 / 5 by my estimates on 200k which is just crazy. low risk growth stock is key in this market - this has it all.
I believe the only risk is not being able to keep up with demand. they will need more than 200k if demand duplicates the Jan / Feb figures for sure. They may need 300k based on those figures.
placing for what?
They will be throwing off cash and the other projects and expansion are not expensive.
the boss bought £800k in the last placing in 2015 above this price. can't see him wanted to dilute his shares!!!
I pretty sure this is just the start. think about it logically, everything is pointing in the right direction going forward. every update should be very strong then they will expand and get the other projects of the ground (and these are low capex).
Not even mentioning that they are sheltered from high energy prices due to solar.
very interesting thanks. they certainly don't look over the top now.
yes yesterdays news was so crucial going forward. opens up a whole new market.
Maybe even 200k production will need to be revisited. everything is in there favour.
Happy for a bit of churn at these prices ready for the next leg up. lots will have been in at 4 and 6p and will want to skim off the top. all helps with the next move up.