Passport Potash (PPI-V) released their eagerly awaited 43-101 resource on their Holbrook potash property on April 2, 2012. The market acts like they released it on April Fool’s day.
The report showed 125 MMT of rock grading 14.29% KCL for a total of 17.96 million tons of KCL in the indicated category for a contained mineral value of $8.9 billion in the ground of potash with today’s price of $495 per ton. In addition, in the inferred category, the company showed 12.2% potash in 587.8 MMT of rock for a total of 71.8 MMT of KCL worth some $35.5 billion in the ground.
This is absurd; the company has something like $45 billion worth of potash in the US and has a market cap of $45 million. I’d guess the company has a lot of upside. Potash is in increasing demand as the cost of energy goes up and the company won’t be that cheap for long.
One share of PPI bought at $.265 as I write has .52 tons of potash behind it worth $257 today. If you like potash, you have to love PPI.
Passport is an advertiser and we are biased. Do your own due diligence.
Passport Potash Inc