Western Potash (TSX: WPX)
Shares Outstanding: 467,185,559
Market Cap: CAD$63.07 million (USD$48 million)
Cash: CAD$74.78 million (USD$56.91 million)
Western Potash (TSX: WPX) is focused on developing its 100% owned 87,500 acre Milestone Potash Project located approximately 30 km southeast of Regina in Saskatchewan, Canada, at the heart of the world’s richest and most prolific concentration of potash mines containing 50% of the world’s potash reserves and 30% of the world’s potash production. WPX‘s Milestone Potash Project is immediately adjacent to major potash projects owned by BHP-Billiton (BHP): a $105 billion company, Vale (VALE): a $44 billion company, and K+S AG (KPLUY): a $4.5 billion company. It is in very close proximity to the largest solution-extraction potash operation in the world, the Belle Plaine Potash Mine, owned and operated by Mosaic (MOS): a $10.6 billion company.
WPX is currently trading for below its cash position! WPX has $0.16 per share in cash and no debt! At WPX‘s current price of $0.135, its Milestone Potash Project is being valued at less than zero when in 2010, K+S AG (KPLUY) paid CAD$434 million to acquire the adjacent potash assets of Potash One! K+S AG is currently building a production plant at its Legacy Potash Project and is set to commence potash production in 2017! WPX‘s Milestone Potash Project is very similar to the Legacy Potash Project in terms of size and projected commercialization/production costs!
On August 25th of last year, WPX raised $80.7 million at $0.3358 per share in two private placement transactions! For WPX just to return to their latest private placement investment price from last year, its stock will need to rise 148.74%!
On October 6th of last year, WPX signed a Memorandum of Understanding for Strategic Cooperation with China Development Bank – the world’s largest development finance institution, and the largest Chinese bank for foreign investment and financing cooperation, long-term lending and bond issuance with about USD$2 trillion in assets! The signing ceremony was attended by Hu Huaibang, Chairman of China Development Bank!
North American Potash Inventories have declined by a stunning 49% over the past three months and are now 13.8% below the 5-year average! Potash prices are poised to explode to the upside in 2017!