RWD is starting to look good imo.....they came out with a great JORC ANN last week concerning the potash reserves they own.
There is only about 44 million shares and the JORC has an in situ value of something ridiculous like $100+ per share. Potash has a retail of about $630 per tonne.
The JORC ANN of last week offered up the following:
24mn - 27mn tonnes of the stuff
There are no other potash producers in Australia as far as I am aware.
Recently BHP had expressed an interest in potash and has started an expensive mining project in Canada.
RWD's potash lies at surface in what are basically huge evaporation pools.
In addition RWD has some good looking gold prospects as well.
The price has been creeping up all week closing at 84c...it was interesting to note a buyer getting filled at 80c for 150k on Friday ....this just about cleared out the sell depth.
RWDO have a strike of 20c and mature in June 09.
Even taking half price for the RWD potash to take into account cap ex for the first year or so of operation we still get
25mn tonnes (approx) potash @ $315 = $7,875,000,000
So undiluted that's : $178 per share
and diluted : $135 per share
Current price 84c
It's gotta be worth a lot more than 84c
So with 44mn shares and only 14mn oppies available I do expect this one to fly to very soon - you have been warned.