Junior Potash Exploration Companies
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Investment opportunities in the Potash sector
Junior potash companies are actively exploring mineral deposits in hopes of establishing operating mines. With the price of fertilizer approaching historical high levels, there is substantial revenue to be made by successful entities. Many companies use the large producers as examples of how profitability may be achieved. The large players in the sector are worth between $500 million and $40 billion. While the junior potash companies are substantially smaller, they may eventually move into the senior realm with luck and sound business practices.
Junior potash exploration companies actively investigate their mineral holdings. They seek to establish the size of the reserve, purity of the resource and the difficulty in bringing in revenue. There are substantial start up costs involved. Usually extensive environmental studies must be made before any activity can be started. There may be different environmental rules for exploration and production activities. Basic economics of the potential mine site must be considered. Often these sites are located in remote areas. They may be poorly served by roads, electrical and other basic services. Many potash deposits are found deep below ground. The company may have regular potash or the more valuable sulphate form. There are significant risks, costs and dangers associated with the mining of tons of material found 1200 feet or more below ground. All of these factors make investments in junior potash companies inherently risky and renders the stock as "speculative". Still, the gains can be impressive for knowledgeable investors. Proper study of the sector is advised as is the determination of risk tolerance for the investor.
Investors should look for junior potash explorations companies which are located fairly near to established firms. For example, Potash Corporation operates in the Canadian province of Saskatchewan. Potash was formed as prehistoric oceans evaporated in areas such as Saskatchewan. Because the ocean was vast, the areas rich in deposited potash were quite large. It stands to reason that locations near working potash mines would also contain recoverable amounts of mineral. Luckily for the small investor, small junior exploration companies operate in the same province as the big producers.
Junior Potash Exploration Companies
Karnalyte Resources Inc, $136 Million
Intercontinental Potash Corporation, $163 million
Encanto Potash Corporation, $104 million
Passport Potash Inc., $71 million
Allana Potash Corporation, $236 million
Photograph: By LCGS Russ (Own work) [CC-BY-3.0 (www.creativecommons.org/licenses/by/3.0)], via Wikimedia Commons
Junior potash exploration companies actively investigate their mineral holdings. They seek to establish the size of the reserve, purity of the resource and the difficulty in bringing in revenue. There are substantial start up costs involved. Usually extensive environmental studies must be made before any activity can be started. There may be different environmental rules for exploration and production activities. Basic economics of the potential mine site must be considered. Often these sites are located in remote areas. They may be poorly served by roads, electrical and other basic services. Many potash deposits are found deep below ground. The company may have regular potash or the more valuable sulphate form. There are significant risks, costs and dangers associated with the mining of tons of material found 1200 feet or more below ground. All of these factors make investments in junior potash companies inherently risky and renders the stock as "speculative". Still, the gains can be impressive for knowledgeable investors. Proper study of the sector is advised as is the determination of risk tolerance for the investor.
Investors should look for junior potash explorations companies which are located fairly near to established firms. For example, Potash Corporation operates in the Canadian province of Saskatchewan. Potash was formed as prehistoric oceans evaporated in areas such as Saskatchewan. Because the ocean was vast, the areas rich in deposited potash were quite large. It stands to reason that locations near working potash mines would also contain recoverable amounts of mineral. Luckily for the small investor, small junior exploration companies operate in the same province as the big producers.
Junior Potash Exploration Companies
Karnalyte Resources Inc, $136 Million
Intercontinental Potash Corporation, $163 million
Encanto Potash Corporation, $104 million
Passport Potash Inc., $71 million
Allana Potash Corporation, $236 million
Photograph: By LCGS Russ (Own work) [CC-BY-3.0 (www.creativecommons.org/licenses/by/3.0)], via Wikimedia Commons
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About Javrsmith
Javrsmith is a minor investor in Encanto and Intercontinental and was previously invested in Potash One.
by javrsmith
I am a PMP project manager with additional certifications in procurement, interviewing and contract management. My background is in computer technology... more »
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