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Epo is the best speculative play in the Canadian basin
The whole fertilizer segment should have a fantastic 4th quarter
November should be a month of steady climbing
Encanto Potash Corp. announces First Nations warrant extensions
TRADING SYMBOL: TSXV EPO.V
VANCOUVER, Oct. 18, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV:EPO) (OTCQX:ENCTF) announces that subject to regulatory approval, it has extended the expiry dates of an aggregate 600,000 First Nations' warrants. 200,000 First Nations' warrants originally issued by the Company on October 28, 2009 with a current exercise price of $0.225 have now been extended and will expire on October 28, 2014. 400,000 First Nations' warrants originally issued by the Company on November 9, 2009 with a current exercise price of $0.235 have been extended and will expire on November 9, 2014. The exercise prices of these extended First Nations' warrants will not be amended.
http://www.newswire.ca/en/story/860803/encanto-potash-corp-announces-first-nations-warrant-extensions
VANCOUVER, Sept. 30, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV:EPO) (OTCQX:ENCTF) is pleased to report that the first of two (2) planned wells to be drilled in order to expand the resource to the northeast on the Muskowekwan Treaty Land Entitlement lands has been completed. North Rim Exploration Ltd., of Saskatoon is overseeing the drill program and handling of the core. The first hole was drilled to a depth of 1,245 metres and successfully intersected each of the Patience Lake, Belle Plaine, and Esterhazy Members. The core will be assayed and will also have engineering studies completed to determine certain cavern design and production parameters. The additional studies are necessary for the planned solution mine development. Drilling of the second test well will commence within days and is expected to be completed over the next several weeks.
Based on the results of these two holes, and previous 2D and 3D seismic work, an updated NI 43-101 compliant resource estimate is scheduled to be released in Q4 2011 or early Q1 2012 depending on assay turnaround time.
Encanto and the Muskowekwan First Nation ("MFN") also report that the treaty land designation vote has been rescheduled due to heavy caseloads within the respective Federal agencies having responsibility for this process. The agencies have now finalized the process and MFN has been advised the new voting date is Saturday November 26, 2011.
"The rescheduling of the vote is a purely procedural issue and certainly not contentious," states Encanto President and CEO Jim Walchuck. The information campaign to the MFN stakeholders was completed successfully and we remain extremely confident that we have gained the support and the trust of the MFN through this entire process." The MFN continues to keep their membership updated both on and off the MFN Home Reserve. Encanto is confident that the results of the vote will be favourable as indicated by the continued support of Chief Bellerose who was recently re-elected on a pro potash platform.
The Company and MFN look forward to the completion of the drilling program, TLE designation vote and release of a significantly expanded resource estimate over the coming weeks as the Company continues its development of the MFN Property.
Source: http://www.newswire.ca/en/releases/archive/September2011/30/c8341.html
(ACCESSWIRE via COMTEX) -- ANALYSIS - ProspectingJournal.com - Upon returning from my latest site visit and video shoot detailing a partnership for potash in Saskatchewan between Encanto Potash [EPO - TSX.V] and the Muskowekwan First Nation (MFN), I was pleased to see that the relationship was healthy and the company is poised to make the gains I'd read about before the trip. Often we can glean from press releases that a relationship is mutually beneficial, but until you see the two parties interact first hand you can't be sure. As a former surface land man, I've seen plenty of less-than-ideal interactions between landowners and their potential lease holders, but when it came to interviewing EPO's President and CEO Jim Walchuck and the MFN's Chief Reginald Bellerose it couldn't be clearer that the two parties are comfortable and happy to be in business with one another. That said, my biggest lessons from the trip came from learning about the Muskowekwan First Nation. Visit http://prospectingjournal.com/potash-in-saskatchewan-encanto-muskowekwan/ for video interviews with members of the MFN. As our crew set up the cameras for the equipment and measured our light levels, I had a chance to walk around the school that stood as a pillar of hope in the middle of the community. Slogans adorned the hallways aimed at teaching mutual respect, quelling bullying and increasing self-esteem. But when I talked to the elders and to the people who came by to take part in our ProspectingTV shoot, I learned that these slogans might not be enough for the children who will someday be the next group of elders in charge of the community's stewardship. What I saw was a community in need of a boost, and a concern for well being that spanned generations. These people weren't just concerned about their current situation, but for the hopes and dreams of their children and the generations to follow. The elders were genuinely worried about what could be done to break the cycle of despair on the reserve that too often results in either their children moving away to far off communities for work, or staying and giving up hope. Through developing their reserve's ample potash resource, the Muskowekwan are poised to receive bountiful gifts from the land, not only in the form of royalties and infrastructure development, but in jobs and a lifted sense of self-esteem. There is plenty of potash in Saskatchewan, and the Muskowekwan sit right in the sweet spot surrounded by numerous producing mines. Given the recent release of Encanto's Preliminary Economic Assessment (PEA), which includes a plan for solution mining over conventional mining, it seems that the Muskowekwan people will benefit from this partnership for many years. The PEA was a company milestone for Encanto, as well as for the Muskowekwan people. It outlined a mine life of nearly 56 years, and that's not including the additional Treaty Land Entitlement (TLE) lands that would add 15,500 acres to the package and could possibly extend the mine life by decades. Whether or not these additional TLE lands will be designated for development will be announced after October 1, 2011. The vote will take place both on the Home Reserve near Lestock, Saskatchewan, and through mail-in ballots, under the authority of Aboriginal Affairs and Northern Development (AAND). Both Walchuck and Chief Bellerose are confident in the upcoming results, based on responses from preliminary meetings. Based on the responses I received from the people I talked to, the Chief and CEO were on the right track, and the message contained in the PEA should only help the situation. What the PEA delivered was a message of hope to a people in need of reinforcement. While solution mining lowers the overall manpower requirements, it will likely increase the opportunities for employment by First Nation members, with a roster of 320 full time employees scheduled to be needed. For the MFN this means more work available, while for EPO it means a higher NPV and lower Capex compared to conventional mining. One significant meeting was with Chad Owen Blind who waited eagerly throughout the day for his chance to weigh in on the potential of the partnership. Chad had worked in other parts of the province from general labour to night security, as well as moonlighting as a semi-pro wrestler thus proving himself more than employable off the reserve. A potash mine would mean that he could work near his home, sleep in his own bed, and be near his own family without going elsewhere to earn an income. There's plenty of mining related work for potash in Saskatchewan, but for Chad and others like him there's none currently near home. For Chad, the Encanto partnership represents a homecoming of sorts, and a vision of what his community could become. G. Joel Chury
ENCTF/EPO - (stockhouse) this is is even better than could be expected:
The potash beds are very very consistent so we know that inferred will be converted to indicated.
-Therefore a 56 year mine life already
Add in the TLE lands and you have +/- 100 years @ 2.5m tonnes/year.
The capital costs were predictable to on the low side and the operating costs/tonne ($68.14) are very low with potash predicted to be $500+ for the foreseeable future.
One thing I had never thought about was 1000 jobs in the construction phase. Many of those are available to FN people in Saskatchewan. What a boon to their economy!
Encanto Potash releases positive Preliminary Economic Assessment for Muskowekwan Project (cnw)
TRADING SYMBOL: TSXV EPO.V
VANCOUVER, Aug. 18, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO)(OTCQX: ENCTF) is pleased to report results of a positive Preliminary Economic Assessment ("PEA") carried out on the Muskowekwan Project in Saskatchewan, Canada by Wardrop, a Tetra Tech Company ("Wardrop").
Encanto President and CEO Jim Walchuck comments: "We are very pleased with the robust internal rate of return ("IRR") of 24% attributed to a solution mine in the PEA, as compared to 20.9% IRR for a conventional mine. Wardrop's recommended solution option gives Encanto a concise economic direction as how best to take the Muskowekwan Project into production."
The following table provides a comparison summary of the two mining methods analyzed on the Home Reserve land package forming part of the Muskowekwan Project:
Solution Mine Conventional Mine
Indicated Ore (% KCL) 79.1 MMt @ 29.4% 45.9 MMt @ 34.8%
Inferred Ore (% KCL) 60.5 MMt @ 29.7% 32.7 MMt @ 36.1%
Initial Mine Life (Indicated) 32 years 23 years
Possible Additional Mine Life (Inferred) 24 years 16 years
Annual Production (Primary & Secondary) t KCL 2,500,000 tpy 2,000,000 tpy
Total Estimated Capital Cost $2,418,100,000 $2,716,200,000
Project Unit Operating Cost/Tonne $68.14/t KCL $55.07/t KCL
Estimated Net Present Value (NPV10) $2,347,000,000 $2,859,000,000
Estimated After Tax & Royalty (IRR) @ $450 t KCL 24.0% 20.9%
Estimated After Tax & Royalty (IRR) @ $500 t KCL 26.6% 23.4%
Estimated After Tax & Royalty (IRR) @ $400 t KCL 21.3% 18.3%
Based on the above analysis Encanto intends to pursue the development of a solution mine for a number of reasons:
•Annual potash solution production of 2.5 MM tpy from the caverns on the Home Reserve will result in a 32 year mine life and this can be extended an additional 24 years should the Inferred Resource be converted to an Indicated Resource. This is a much longer mine life compared to a conventional mining scenario.
•Lower CAPEX and CAPEX/Tonne produced.
•Lower overall manpower requirements, however, opportunities for employment by First Nation members will likely be greater. Overall, 320 full time employees are planned.
•Higher internal rate of return.
•Shorter time to production.
•Ability to utilize poor quality or even brackish water in the mining process to enhance environmental stewardship and lower costs.
•Over 1000 workers to be employed in the construction phase.
•The potential to improve the IRR to 25.7% @ $450/t KCL and 28.4% @ $500/t KCL if a local water aquifer can be accessed.
In addition:
•As disclosed in prior news releases, Encanto anticipates adding an additional 15,500 acres to the Muskowekwan Project's land package which nearly doubles the land on the Muskowekwan property through a Treaty Land Entitlement process.
•Encanto plans to drill the TLE lands and provide an updated resource report which will include this acreage. Additional resources if confirmed on the TLE lands could possibly extend the mine life by decades.
With this positive PEA the Company will focus its immediate attention on the commencement of Environmental Baseline Studies. Once the additional holes are drilled and assays received the Company will commence a Prefeasibility Study.
This Wardrop PEA was prepared by John Cairns, P. Eng., reviewed by Vern Funk, P. Eng., and authorized by Stan Kotowski, P. Eng. Vern Funk, P. Eng. and Stan Kotowski, P. Eng reviewed technical information in this news release and had reviewed the results as reported in tables above. Stan Kotowski reviewed and approved the contents of this news release in respect to PEA. He was also responsible for the supervision of all disciplines involved in PEA preparation and adherence to strict QA/QC protocol. Wardrop, a worldwide engineering firm, offers Encanto a wide range of engineering experience ranging from PEA's, through to feasibility studies, detailed design, equipment procurement, construction management and commission/start up.
The PEA was completed in conjunction with the NI 43-101 compliant technical report prepared by North Rim Exploration of Saskatoon, Saskatchewan and released by the Company on March 18, 2011. North Rim has extensive experience in the resource characterization and preparation of NI 43-101 technical reports on potash resources having worked on Saskatchewan potash projects for Mosaic, Potash One and Athabasca Potash.
The technical content of this news release has been reviewed by James Walchuck, P. Eng., President & CEO of Encanto, a qualified person as defined by NI 43-101.
About Encanto:
Encanto Potash Corp. is a TSX Venture Exchange-listed Canadian resource company engaged in the exploration and development of potash properties in the Province of Saskatchewan, Canada, the largest producing region for potash in the world.
For additional information about Encanto Potash Corp., please visit the Company's website at www.encantopotash.com or review the Company's documents filed on www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Walchuck"
NEWS - Encanto Potash releases positive Preliminary Economic Assessment for Muskowekwan Project (cnw)
TRADING SYMBOL: TSXV EPO.V
VANCOUVER, Aug. 18, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO)(OTCQX: ENCTF) is pleased to report results of a positive Preliminary Economic Assessment ("PEA") carried out on the Muskowekwan Project in Saskatchewan, Canada by Wardrop, a Tetra Tech Company ("Wardrop").
Encanto President and CEO Jim Walchuck comments: "We are very pleased with the robust internal rate of return ("IRR") of 24% attributed to a solution mine in the PEA, as compared to 20.9% IRR for a conventional mine. Wardrop's recommended solution option gives Encanto a concise economic direction as how best to take the Muskowekwan Project into production."
The following table provides a comparison summary of the two mining methods analyzed on the Home Reserve land package forming part of the Muskowekwan Project:
Solution Mine Conventional Mine
Indicated Ore (% KCL) 79.1 MMt @ 29.4% 45.9 MMt @ 34.8%
Inferred Ore (% KCL) 60.5 MMt @ 29.7% 32.7 MMt @ 36.1%
Initial Mine Life (Indicated) 32 years 23 years
Possible Additional Mine Life (Inferred) 24 years 16 years
Annual Production (Primary & Secondary) t KCL 2,500,000 tpy 2,000,000 tpy
Total Estimated Capital Cost $2,418,100,000 $2,716,200,000
Project Unit Operating Cost/Tonne $68.14/t KCL $55.07/t KCL
Estimated Net Present Value (NPV10) $2,347,000,000 $2,859,000,000
Estimated After Tax & Royalty (IRR) @ $450 t KCL 24.0% 20.9%
Estimated After Tax & Royalty (IRR) @ $500 t KCL 26.6% 23.4%
Estimated After Tax & Royalty (IRR) @ $400 t KCL 21.3% 18.3%
Based on the above analysis Encanto intends to pursue the development of a solution mine for a number of reasons:
•Annual potash solution production of 2.5 MM tpy from the caverns on the Home Reserve will result in a 32 year mine life and this can be extended an additional 24 years should the Inferred Resource be converted to an Indicated Resource. This is a much longer mine life compared to a conventional mining scenario.
•Lower CAPEX and CAPEX/Tonne produced.
•Lower overall manpower requirements, however, opportunities for employment by First Nation members will likely be greater. Overall, 320 full time employees are planned.
•Higher internal rate of return.
•Shorter time to production.
•Ability to utilize poor quality or even brackish water in the mining process to enhance environmental stewardship and lower costs.
•Over 1000 workers to be employed in the construction phase.
•The potential to improve the IRR to 25.7% @ $450/t KCL and 28.4% @ $500/t KCL if a local water aquifer can be accessed.
In addition:
•As disclosed in prior news releases, Encanto anticipates adding an additional 15,500 acres to the Muskowekwan Project's land package which nearly doubles the land on the Muskowekwan property through a Treaty Land Entitlement process.
•Encanto plans to drill the TLE lands and provide an updated resource report which will include this acreage. Additional resources if confirmed on the TLE lands could possibly extend the mine life by decades.
With this positive PEA the Company will focus its immediate attention on the commencement of Environmental Baseline Studies. Once the additional holes are drilled and assays received the Company will commence a Prefeasibility Study.
This Wardrop PEA was prepared by John Cairns, P. Eng., reviewed by Vern Funk, P. Eng., and authorized by Stan Kotowski, P. Eng. Vern Funk, P. Eng. and Stan Kotowski, P. Eng reviewed technical information in this news release and had reviewed the results as reported in tables above. Stan Kotowski reviewed and approved the contents of this news release in respect to PEA. He was also responsible for the supervision of all disciplines involved in PEA preparation and adherence to strict QA/QC protocol. Wardrop, a worldwide engineering firm, offers Encanto a wide range of engineering experience ranging from PEA's, through to feasibility studies, detailed design, equipment procurement, construction management and commission/start up.
The PEA was completed in conjunction with the NI 43-101 compliant technical report prepared by North Rim Exploration of Saskatoon, Saskatchewan and released by the Company on March 18, 2011. North Rim has extensive experience in the resource characterization and preparation of NI 43-101 technical reports on potash resources having worked on Saskatchewan potash projects for Mosaic, Potash One and Athabasca Potash.
The technical content of this news release has been reviewed by James Walchuck, P. Eng., President & CEO of Encanto, a qualified person as defined by NI 43-101.
About Encanto:
Encanto Potash Corp. is a TSX Venture Exchange-listed Canadian resource company engaged in the exploration and development of potash properties in the Province of Saskatchewan, Canada, the largest producing region for potash in the world.
For additional information about Encanto Potash Corp., please visit the Company's website at www.encantopotash.com or review the Company's documents filed on www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Walchuck"
Per:
James Walchuck
President and CEO
The American side and the latest - http://investorshub.advfn.com/boards/board.aspx?board_id=22009
You are correct. We will see $$$ coming over the next year. We have been waiting long enough.
Looks like the bottom is in, many news releases coming in the following months, which will keep the stock price going higher. Anyone thinking they`re going to get this stock cheaper later during the summer, is going to be getting a reality check. This will be the next potash mine in Sask. and EPO, and the natives are going to fast track this mine and before you know it big profits are going to be made by long investors as the company starts to increase their revenues.When we break the 50day and the 200 day moving averages of .33 cents this should be a clear sign that the bottom is in.
Thanks for both of your replies, I plan on holding and hope to add in the next couple of weeks, as I will have an additional $6000. to play with.
In any event, I'm thinking I want to swing trade a few stocks, in the Venture exchange, but doing this thru Scottrade is too expensive, and that is why I was looking for a good alterative to Scottrade.
Any Ideas?
Appreciate your thoughts (either of you) TIA.
PS.
I have to go out for the next hour, so If I don't reply soon,
that is why.
RGD
i agree, this thing will start to move in the next month or two...by dec, who know how high it will be....patience with this one
I use scott too. Love stockhouse. I own the american stock. Just sit back and watck your mony grow.
You will make excellent return on investment. Hold for at least a year.
Funkyarizona,
I'm new to this stock. Bought 82,000. shares thru Scottrade, but the cost to purchase was kinda high, $166.00.
If you don't mind, may I ask who you are trading thru?
I'm looking for a company that trades both US and Canadian stocks.
This board is not very active. You will find more conversation and info at the stockhouse board.
TIA RGD
Time to buy as much as you can afford. Do your own dd folks.
$100 pps in 2 years if all goes as planned. Definitely has the potential. Buy if dips to .35 for now.
well look like everyone who bought in before the pr, is getting out...sad to see....but thats flippers...
i agree with your evaluation. my guess is the co is worth 375-400mil...which would value its buy out at 1.5...that is assuming it is on the buy out list....
So, what does today bring? Friday had huge volume and a steady rise in price, which suggests a strong appetite for the shares, not day trading where you would see the share price move up and down significantly.
The project and property has been validated, so EPO is one step closer to being a take out target. This report is a significant step for them.
The market cap is 120 Million now, so does it run to 300 plus in the short time frame before pulling back. That would suggest we see $1.25ish
comments?
Markets move slowly at times, but this artical is bang on, and even though written in June of last year, speaks well of what we are seeing now....
BHP Announces $12 Billion Investment in Saskatchewan Potash Belt
By Eric Pratt
ResourcexInvestor.com
Sunday, June 13, 2010 BHP Billiton (NYSE:BHP) – the $180 billion global mining giant – is making a $12 billion investment in the Western Canadian potash basin, and the money inflow is likely to affect the stock prices of resource-rich potash juniors, like Western Potash (TSX.V:WPX) and Encanto (TSX.V:WPO).
Potash Prices have been on a roller-coaster ride the last five years, rising from $150 to almost $1,000 before settling back to the current price of $400. Farmers, who missed a year or two when prices were sky high, are now facing chronic soil nutrient deficits. They are forced to buy more potash now, or risk having sub-economic crop yields. As cities spread and encroach on arable (farmable) land, farmers are forced to pump more and more nutrients into the soil.
Potash stocks appear to be entering a perfect storm, with a number of catalysts converging simultaneously to drive stock prices up.
"Our game is to really develop a resource basin for the long term," confirmed Graham Kerr, the head of BHP's Diamond and Specialty Products business, earlier this week.
Kerr noted that BHP invests in assets that are low-cost and have expandable resources, making a Saskatchewan potash project an ideal fit for the company's portfolio.
BHP has just released resource data related to Jansen -- its flagship Saskatchewan potash project. Jansen, which is expected to begin production of the fertilizer in 2015, has 3.37 billion tonnes of material contained 25.4 percent potassium oxide.
BHP plans to develop Jansen into the world's single largest potash mine with eight million tonnes of annual output. Part of BHP’s motivation may be to diversify out of Australia – where the government is planning a new tax on the mining industry.
''The Jansen project is a prime example of the array of opportunities BHP Billiton has to grow its portfolio outside Australia,'' said a BHP spokesman, ''Canada is a stable and supportive investment environment and the all-in tax rate for this project will be globally competitive for potash.'' Meanwhile, Western Potash (TSX.V:WPX) has just announced the receipt of an NI 43-101 compliant Mineral Resource Estimate for its Milestone property in southern Saskatchewan. This updated resource estimate significantly upgrades the Milestone potash resource, which consists of 41 million tonnes of Measured Resource (contained KCl), 133 million tonnes of Indicated Resource, and 560 million tonnes of Inferred Resource.
Is Western Potash a possible buy-out target? Yes. With the acquisition of Athabasca, BHP has signaled what kind of project they are looking for.
Encanto (TSX.V:EPO) is also on that potential buy-out list. Encanto is a well-run potash junior with resource grades that compare favourably to Athabasca. They have similar thickness and grade – while EPO has market cap of $23 million – about one tenth of the API valuation. So EPO has lot of share price upside as they build up their resource with more drilling and 3D seismic.
EPO’s first drill hole at its Muskowekwan potash property in Saskatchewan returned values of 25.2% K2O (39.9% KCl) over 3.6 metres in the Patience Lake potash bed, and 25.5% K2O (40.4% KCl) over 2.4 metres in the Belle Plaine potash bed. Drilling in the lower Esterhazy Member returned values of 5.3 metres of 12.4% K2O (19.6% KCl).
The size of Encanto’s land package is 36000 acres and the two beds combined are 6 m thick. That’s a potential mineable resource of about 137 M tonnes of K2O or 217 M tonnes of KCL. About $200 billion worth of potash.
Not surprisingly – given all this activity - a UBS analyst upgraded shares of POT from "Neutral" from "Buy" and increased the price target by $6 to $112 - implying stock gains of about 20% in the next year. Potash Corp shares rose 3% percent on the news.
But big trees don’t grow as fast as little trees. Keep your eye on Western and Encanto as the potash sector heats up again.
SOURCE: http://www.midasletter.com/news/100613_BHP-Announces-12-Billion-Dollar-Investment-in-Saskatchewan-potash-belt.php
Something in the air today?
i think this will be a good buying opp....will trade in the 0.30's, until news comes out...then will go back up to the 0.60's or higher....my opinion ofcourse....
as long as we dont go below the 0.30s, this is a great buying opp...
Yes, I had seen that. Hopefully they consider buying another 125 ;)
Encanto Sells Off On News. Opportunity or Breakdown?
Encanto (TSXV EPO), along with its partners the Muskowekwan First Nations, has been completing a National Instrument 43-101-compliant initial resource calculation on its Muskowekwan project in Saskatchewan. Encanto completed drilling all required infill holes and released its final assay results in December. The potash beds confirmed their consistency, but that initial resource calculation has missed earlier delivery dates for Q3-Q4 2010. According to management it is still due in Q1 2011.
Today Encanto announced a modification to the report's scope of work. The market hates delays, and so has already been on edge, but now it fears that management may not have been that pleased with the draft report, and hopes that by incorporating a range of mining methods it can achieve a sufficiently robust alternative that maximizes the projects' valuation, and the recent market cap the market was willing to give the company.
We have seen this "sell on news" reaction before with Encanto, as traders have aggressively tried to push the market back, evidenced by the wide trading range in the upper channel of our daily chart. But we need to keep in mind that results to date are very positive, with assay grades and thicknesses similar or better than the published grades from other Canadian producing mines - and remember that Saskatchewan boasts the world's highest grades.
Encanto recently completed a $5.0 million unit funding at $0.40 with another $500,000 raised via flow-though shares at $0.50. These 13.5 million shares don't come free-trading until April 18, so there's no material liquidity event that underlies this sell-off.
Technically, there are several trading channels and clear trends with defined support and resistance areas portrayed on our presented chart. Today the share price found strong support, bouncing off the lower trend line at $0.38, which coincides with the 50% Fibonacci line. All of our key indicators are flashing oversold. The $0.38 low of the day was formed early, essentially right after the open, and the subsequent retest of the lows met strong buying at $0.39.
We are adding 125,000 shares around the opening tomorrow, to re-establish a 250,000 share position for the GSW Model Portfolio.
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In Cancun last week so missed the panic. Can't say that I like it, especially when I doubled my position a few weeks back, but they have a large chunk of land, they drilled five great holes, enought for them to proceed with the 43.101, and their results rival those of POT. The market never likes delays, but this has to be a take out target with their land package. I have to think that First Nations and Encanto are chatting with large mining companies.
And here I was hoping to come back from holidays with a big smile, not a sleepless night@#$%^&*()_?
What's this? Oh, I see. I have gotten my ass handed to me, LOL!
Investing in commodities is still the way to go!
Commodity investment has been a very successful strategy over the past 6 years and is still the best way forward to protect against economic risks and unforeseen events.
Author: Arnold Bock (with Lorimer Wilson)
Posted: Sunday , 06 Mar 2011
TORONTO (www.munKNEE.com) -
Back in 2005 I commented in an article that "my investment portfolio is almost exclusively invested in a basket of commodities (gold, silver, potash, uranium and crude oil) of which the bulk is precious metals. A third of my investments are in gold and silver bullion and a range of individual commodity-related stocks, from the very large producers to the very early stage small junior exploration companies, or their long-term warrants where they exist. Two thirds are in precious metals ETFs."
It is now 2011 and my rationale for doing what I did back then has stood the test of time and, I expect, will continue to do so for many more years to come.
Let me explain why I still think such a basket of commodity-related assets is the only way to go. I also encourage you to read my recent article entitled "Confessions of a Conservative Investor" here in which I explain why I believe there is nothing speculative about investing in commodities and why, in fact, they are the ideal investments for cautious investors.
From my perspective the economic and political risks on the global horizon are even more serious than they were a few years ago. Therefore, I still believe that the best way to preserve my equity, and secondarily, to grow it, is to invest in precious metals, energy and agriculture. Other sectors like the stock and bond markets are currently either overpriced by historical standards and/or highly vulnerable and, as such, the downside risk of precious metals, energy, agriculture and even most base metals is far less than those alternatives.
WHAT WILL CONTINUE TO MAKE INVESTING IN COMMODITIES A WINNER?
Many events and circumstances could be the trigger that causes the system to implode, explode or go off on some tangent, It will probably be a sudden factor which will trigger yet others such as a leveraged hedge fund or sovereign debt collapse, unexpected military aggression or major terrorist activity (such as the sinking of a petrol ship coming through Hormuz or Malacca straits or perhaps even the Suez Canal.) Whatever unfolds will definitely cause currency gyrations and imbalances which will all cause public opinion and confidence to shrink dramatically. It is that last component which is the truly ugly part for which manipulation by the power brokers will be ineffective to counteract.
There is virtually nothing on the economic and political horizon to tell me that any country - anywhere - is changing course. The U.S. with all of its current policies, practices and scary economic and financial realities continues to operate as if it is business as usual. Moreover, there is absolutely nothing in terms of facts to suggest that the system will get any better. U.S. politicians, for example, only have a time horizon spanning to the next election - 6 years for Senators, 4 for the President and 2 for Congressmen - with the calendar always shortening. Their goal to is to be reelected, not make waves, always bribe the voter with their own, or borrowed, money and never ever tell the ignorant masses, or the fifty percent who actually vote, the ugly truth because they are sure to turn on the messenger.
Denial always trumps an acceptance of the truth even when one is endorsing a system designed to leave one's kids with bad values and worse circumstances than we have now. The public will always opt for the pleasure of the moment rather than deny themselves to ensure a better future for themselves and/or their children. Proof of that is everywhere you look - home "owners' with no equity in their homes and mega-sized debts to the banks, credit card debt often in the tens of thousands of dollars, leased cars in the driveway, expensive holidays they can't afford, shopping sprees with money they don't have, little or no savings in their bank account and either no retirement savings plans at all or ones that are totally under-funded - all topped off by a major aversion to paying their fair share of taxes to maintain the benefits their various levels of government provide. Ah, the good life!
CONCLUSION
So how do I end this rant? Economic and political realities are grim and getting worse. There is scant evidence of any serious and realistic policy initiatives. If there were the public would reject them because it would invariably entail sacrifice and deferral of an enhanced lifestyle until some unspecified future date.
My best advice is to put all (or almost all) your investment eggs (dollars) into a basket of precious metals (gold and silver), agricultural (potash) and energy (uranium and crude oil) assets including a mix of bullion, individual stocks and/or their associated long-term warrants (where available) and ETFs. Doing so will preserve what monies you have and to make the most of the dire circumstances many "first world" nations find themselves in today - and will to an even greater degree in the months and years to come. The U.S., the UK, and most of Europe for that matter, get all the media attention but smug Canadians and Australians, and others too, are not immune to the political and economic/financial uncertainties that abound. Remember, many people hatched their future fortunes by judicious acquisitions in the 1930's when everything looked bleak so it is not too late for you to take both protective and profitable action today.
I conclude by asking two simple questions: "Have you invested to the maximum in precious metals, energy and agriculture assets and, in particular, in gold and silver based investments?" and "If not, what are you waiting for?"
Arnold Bock is a frequent contributor to www.FinancialArticleSummariesToday
Any day now we should be rocking and rolling :)
Not a very active board here, but if you pull up a chart and look at the period of Aug '10 to mid Nov '10, you will see a nice rise in the stock, with higher lows and higher highs, moving from 0.13 to 0.22 and always staying above the 50 day moving average.
In the last week of November, it doubled in price to the mid 40 range.
Now, if you look at the chart from Nov til now, we have had steady increase with higher highs and higher lows, and never dipping below the 50 day moving average.
Encanto is one of a few left with land in potash country that would be considered take out targets. Big money still wants their share of the pie there, and will be interested in the long term, not so much how quickly they can get product to market.
It is hard to imagine how this stock can go anywhere but up over time. Look at the board of directors, seasoned players with a broad reach. The natives will want this for the economic life changing impact it will have for their people and way of life.
Looking forward to a good week :)
nice day for potash and epo for sure...report has to be close...and worth the wait?
Thanks Track.....EPO has had some really strong days, where the stock has moved up and then sells off, and this has happened a few times over the past couple of weeks, and since I was really in a hold pattern with the shares , I really did not give it a lot of thought, but likely it shows the anticipation and appetite for the shares with a good report..
Might be worth picking up a few more at these levels, even to sell them prior to release for a dime....
SH posts regarding RE:
Just phoned IR.....
casa99883
2/17/2011 3:29:20 PM | | 309 reads | Post #29294265 Rate
It looks like the window has been stretched to "end of the month". Tons of data to review and takes a while to compile. On a brighter note only 2 juniors left in Saskatchewan and I hear the Chinese and Hindus are not capping their populations..........BOL good time to add if you have dry powder.....
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hibbee2
2/17/2011 4:22:38 PM | | 343 reads | Post #29294716
first time posting,talked to brian and he said maybe next week,the week after for sure,said it was a fairly indepth process,and also said it still was going to be a watershed moment!!
Likely just a bad source, funny... It does need to be released, and I like the risk/reward here... And the chart looks great with higher high and higher lows. Could be close of the day, but not likely on a Friday
Soft day for most potash plays
I guess we can't quote him on that ;)
My sources have told me that news will be out Wednesday at the close or Before the opening on thursday.... you can quote me on this.....
Damn Romans! ;) I was about to apply for a job as chauffeur if the cars were nice enough ;)
I see, sorry to disappoint........M=thousand. So. 50,000. And plan to hold till they are taken out.
It is late, cheers
Hang on, you just claimed to hold over 20% of the OS? Forgive me, it's late and that fact just hit me.
And I really like our AAA. :))
I just spit a Valentines chocolate across my living room. Nice holdings there sir! Best of luck!
Thanks, have had 50M for over a year.....love the chart and as you know, love the potash story.. Thanks for the heads up!
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