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makes for a nice cut and paste though :)
Dont forget what happened to KXL in 2006 looks can be decieving and lots of expectation already built in...
Kodiak Exploration cuts massive sulphides at Caribou
2006-03-02 10:12 MT - News Release
C$ 1.14
Core is being split and dispatched for assay of copper, nickel and platinum group elements at Acme Analytical Laboratories Ltd. in Vancouver. Final results will be released as soon as they are available. Photographs of the drill core can be viewed on Kodiak's updated website.
NP says Kodiak Exploration creates a buzz at PDAC
2006-03-07 06:55 MT - In the News
C$ 3.25
Kodiak is up 983 per cent this year. Monday Kodiak stock jumped $1.15 to close at $3.25. Ms. Tait says rumour has it Kodiak may have found the next Voisey's Bay. Preliminary results from the first drill hole on its Caribou Lake copper-nickel-PGM property in the Northwest Territories is supporting the excitement. The results came out Thursday
Kodiak Exploration confirms massive sulphides
2006-03-27 09:39 MT - News Release
C$ 1.19
Diamond drill hole CL-06-01, the company's first drill hole, returned an intersection of 1.41 metres grading 1.11 per cent copper, 0.90 per cent nickel and 0.12 per cent cobalt
lmao
No MOS on that stone yet though :)
Very possible, but the further Potash One takes it the more value for the shareholders.
I think this is a project for Paul he isnt going to want to give it away to soon.
When the market realizes how close Potash One is to production you will be Kabooooming all over :)
I got a number and called him months ago :)
Not so much as who wants out as who wants in, building a production facility might involve a little back scratching
so the pie will likely get sliced up for those who bring other goodies to the table :)
I think your right and into strong hands and there may be more crosses too.
will be even sweeter in a year :)
you would think if they intend to sell these shares they would have some shorts in place
these shares are in good hands who know this is the place to be for the next few years
all i know is i got a cheque :)
to a driller maybe, i never even knew siesmic involved drilling till i met you
i had siesmic come across my land once and they did a tiny line they walked through not drilling and no trucks at all
Maybe thats what you meant but its not what you said...
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25697230
Wellthere Seismic program has not even started yet
You should had said... Well "the drilling program" for the Seismic program has not even started yet :)
So maybe not "nearly complete" as I said but not "not even started" as you stated either.
Somewhere in between more likely.
Good idea.
and i suppose your grabbing private placements all the time but this one you didnt have the chance for lmao
sounds like he is not the only one doing work for them anymore
Part of the game you know that, I didnt notice you mentioning the future potential of potash when that placement was done.
Glad you spotted that because it shows that these soon to be shares are in strong hands.
MANAGEMENT DISCUSSION AND ANALYSIS
SIX MONTHS ENDED OCTOBER 31, 2007
(formerly ISX Resources Inc.)
FORM 51-102F1
Background
This discussion and analysis of financial position and results of operation is prepared as of December 30,
2007 and should be read in conjunction with the interim unaudited financial statements for the six months
ended October 31, 2007 and with the audited financial statements and related notes attached thereto for the
year ending April 30, 2007 of Potash One Inc. (the “Company” or “KCL”) where necessary. Those
financial statements have been prepared in accordance with Canadian generally accepted accounting
principles. All dollar figures included therein and in the following Management Discussion and Analysis
(“MD&A”) are quoted in Canadian dollars unless otherwise indicated.
Additional information relevant to the Company’s activities can be found on SEDAR at www.sedar.com.
Forward-Looking Statements
Certain statements contained in the following MD&A constitute forward-looking statements and may
contain words such as “could”, “should”, “expect”, “believe”, “will” and similar expressions and
statements relating to matters that are not historical facts. Such forward-looking statements involve a
number of known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Potash One to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements. Such factors include, among
other things, the receipt of required regulatory approvals, the availability of sufficient capital, the estimated
cost and availability of funding for the continued exploration and development of Potash One’s prospects,
political and economic conditions, commodity prices and other factors. Readers are cautioned not to place
undue reliance on these forward-looking statements.
Company Overview
The Company is a natural resource company primarily engaged in the acquisition, exploration, and
development of resource properties. The Company trades on the TSX Venture Exchange under the symbol
KCL. The Company is considered to be in the development stage and has not yet earned any revenues.
Performance Summary
The Company’s management believes that the potash market is strong and has taken steps to expedite the
development of its potash property in Saskatchewan. The Company intends to undertake the necessary
studies to evaluate the technical and economic viability of producing potash using solution mining
technology.
To date the Company has completed a 43-101 report that has identified an indicated and inferred potash
resource. In this reporting period the Company has engaged an experienced potash engineering firm
(Ercosplan Group of Companies) to conduct a Strategic Assessment Study to review the applicability of
solution mining and make an estimation of capital and operational costs for the project.
Additionally the Company has engaged Boyd Petrosearch of Calgary to complete a 2 and 3-dimensional
seismic program over the northwestern portion of the property.
POTASH ONE INC.
(formerly ISX Resources Inc.)
Management Discussion and Analysis
For the six months ended October 31, 2007 Page 2 of 10
Saskatchewan Potash Permit
The Company, pursuant to an agreement dated May 15, 2006 and subsequently amended on May 10, 2007
holds an option to acquire 100 per cent of a 97,240 acre Potash Exploration Permit #KP-289 (“Legacy
Project”) located approximately 80 kilometres northwest of Regina, Saskatchewan. The Company acquired
the right from Invictus Minerals Corp. of Saskatchewan. Under the agreement the Company is obligated to
pay $750,000 to acquire a 25% interest in the permit, which consideration has been paid and issue 500,000
warrants exercisable at $1 exercisable to acquire 500,000 common shares of the Company prior to May 29,
2008. A further 26% interest may be acquired by incurring cumulative exploration expenditures on the
property of $1 million within 13 months of the date of TSX Venture Exchange acceptance of Notice of the
transaction (which date was May 29, 2007) and paying $1 million within 90 days of completion of such
work. The remaining 49% can be acquired by paying the vendor an additional $1million within 90 days of
the previous payment and issuing $1-million worth of common shares of the Company, based on the
average closing price of such shares for the previous 20 trading days prior to issuance.
The Permit area is immediately adjoining the Belle Plaine potash solution mine operated by NYSE-listed
Mosaic Company which has been in continuous production since 1964. Management of the Company
believes that its Permit area shares the same general geological structure and bed characteristics as the
Mosaic Belle Plaine operating potash solution mine.
The lands presently held by the Company were explored by Imperial Oil Ltd (now ExxonMobil) and
Lumsden Potash Development Co. Ltd. in the 1960’s. Both companies were contemplating a solution
mining approach in developing this asset. These companies did surface drilling, and Imperial also
conducted a reflection seismic survey. The exploration work done by these two companies confirmed the
presence of potash mineralization in two areas (called pilot test sites) of the Legacy Project. The
identification and estimation of potash resources for each site was determined from the evaluation of
chemical assays conducted on sections of drill core which cut through the upper portion of the Prairie
Evaporite Formation.
The information from Imperial Oil documents indicates that Imperial conducted a potash solution mining
pilot test. Lumsden also installed a pilot plant and primary cavern formation by means of fluid circulation
between two caverns, in other words, using solution mining techniques. Lumsden reported that the results
were satisfactory and tests confirmed their design concepts and lived up to their expectations (See 43-101
report for more detailed discussion).
Potash Industry
Potash, or carbonate of potash, is in fact a mixture of potassium salt with an impure form of potassium
carbonate (K2CO3). In other words, it is the common term used for the fertilzer forms of the element
potassium (K). Potash has three main uses: fertilizer, feed supplements and industrial processes. 95% of the
world’s potash is used in fertilizers, while the rest is used for feed supplements and industrial production.
The potash market has been experiencing a rapid growth in the last decade primarily due to more demand
for food, fiber and feed. This trend has been reinforced by increased demand for biofuels. The current
potash market is estimated at 40 million tons annually, and is projected to grow at 3-4% rate annually.
The Company’s management believes that strong economic fundamentals will continue to drive the
demand for potash in the near term.
POTASH ONE INC.
(formerly ISX Resources Inc.)
Management Discussion and Analysis
For the six months ended October 31, 2007 Page 3 of 10
Operational Update
Change of Company Name and Trading Symbol
On December 6, 2007 the Company announced the change of the Company’s name to Potash One Inc. The
name change was approved at the Annual and Special Shareholders' meeting held on November 21, 2007 to
better reflect the ongoing business and operational focus of the Company which is the development of
potash deposits.
The Company also reported that it had successfully secured the trading symbol, “KCL” (Effective
December 6, 2007), which denotes the chemical compound “potassium chloride” which is produced from
solution mining and is commonly known as muriate of potash, one of the key ingredients in the fertilizers.
Strategic Assessment Study Initiated
The Company has engaged a well-known European potash solution mining consulting group
(ERCOSPLAN) to conduct a Strategic Assessment Study on the Company’s property.
ERCOSPLAN is an established solution mining consulting group and have been consulting for major
potash operations in Europe, Africa, Russia and other former Soviet Union countries for past 50 years.
ERCOSPLAN has 125 qualified staff with unique expertise in the following: exploration and evaluation of
mineral salts and natural brine deposits, conventional and solution mining of potash deposits, processing of
mineral salts and natural brine, environmental sustainability of modern mines and processing plants. Their
expertise lies in pre-feasibility and feasibility studies for complete potash projects, process design, project
management etc.
The scope of the study for Potash One Inc. includes the general solution mining concept, an estimation of
capital and operating costs and a benchmarking of the project against operating potash mines. The
Company considers this to be a pre-requisite study leading towards a scoping study.
3-D Seismic Program Initiated
On October 12, 2007, the Company contracted a 25.6 km2, 2 and 3-dimensional seismic program within the
Company's 97,240-acre potash exploration permit known as Subsurface Mineral Permit KP 289.
The Company has engaged Boyd Petrosearch of Calgary to conduct and oversee all the aspects of the
seismic survey. Boyd Petrosearch is an established geophysical consulting firm in the potash sector and has
been providing acquisition and interpretation services to all the major potash operations in the industry for
over a quarter century.
Director and Officer Changes
During the period, on October 3, 2007, the Company’s Board of Directors accepted the resignation of Mr.
Damien Reynolds as a director of the Company. The Company held its Annual General Meeting on
November 21, 2007. The incumbent directors, Thomas R. Tough, Glen C. Macdonald and Ken Ralfs were
re-elected. In addition, two new directors, David A. Berg of Calgary, Alberta and Paul F. Matysek of West
Vancouver, British Columbia were elected. At a Board of Directors' meeting held on November 23, 2007,
the Board appointed Mr. Paul Matysek M.Sc., P. Geo., as President and CEO of the Company.
POTASH ONE INC.
(formerly ISX Resources Inc.)
Management Discussion and Analysis
For the six months ended October 31, 2007 Page 4 of 10
Mr. Matysek is the former president, chief executive officer and co-founder of Energy Metals Corporation,
a NYSE Arca and Toronto Stock Exchange listed company. Energy Metals was one of the only two
uranium companies to be listed on New York Stock Exchange. Under Mr. Matysek's stewardship, Energy
Metals Corp., a pure uranium mining and development company, was recently acquired by Uranium One
Inc. in a transaction valued at over $1.2 billion. Mr. Matysek is a professional geoscientist with more than
25 years of international experience, and a Bachelor Science and a Masters of Science degree in Geology.
Mr. David A. Berg has spent over 28 years of consecutive service with one of Canada's largest publicly
traded companies, Loblaw's Group of Companies Ltd. His most recent responsibility was serving in the
capacity of Vice President of Operations for a business unit in Western Canada representing $1.5 Billion in
annual revenue with a total of 8,500 employees.
Engagement of Investor Relations Firm
The Company engaged Kin Communications Inc. to provide investor relations management services and to
assist the Company in developing and delivering its corporate message to the investment community.
Under the agreement, the Company will pay Kin Communications a monthly fee of $10,000 and has issued
to Kin Communications 350,000 stock options with an exercise price of $1.75 cents per share. The options
are exercisable for a period of three years, and in accordance with TSX Venture policies, twenty-five per
cent of the options will vest each quarter. The agreement has an initial term of 12 months. The agreement is
subject to regulatory approval.
Equity financing of $10,997,500
The Company has also announced a non-brokered equity private placement of up to 4.15 million units at a
price of $2.65 per unit for gross proceeds of $10,997,500. Each unit shall consist of one common share and
one-half common share purchase warrant. Each whole warrant shall be exercisable for one common share
at a price of $3.25 per share for a period of 15 months following closing. In the event that the common
shares close at $4.00 or greater for 10 trading days, subsequent to the expiry of the 4 month hold period, the
expiry date may be accelerated by the Company to a period of 30 days (the "Placement"). Potash One Inc.
shall pay a finder's fee of 5.0% of the gross proceeds of the Placement. The Placement is subject to certain
conditions including, but not limited to, the receipt of all necessary regulatory approvals.
The net proceeds of the Placement will be used to expedite further exploration and development of the
Legacy Potash Project in Saskatchewan, and for general corporate purposes.
Oil & Gas Activities
The Company conducts all of its oil & gas activities through a 100% owned subsidiary, ISX Oil & Gas
Inc. (“ISX Oil”) in order to separate the costs of these activities from its mineral activities.
Ingoldsby Property, Saskatchewan
The Company holds a 100-per-cent working interest in the P & NG rights pertaining to a half-section of
land in the Ingoldsby area of southeast Saskatchewan.
The property is located approximately 60 kilometers northeast of the City of Estevan, Saskatchewan. As
consideration for the acquisition of the Ingoldsby property, the company paid $50,000 to the vendor upon
execution of a purchase agreement and property transfer documentation. A finder’s fee of $2,500 was paid
to a third party for introduction of the property to the Company.
POTASH ONE INC.
(formerly ISX Resources Inc.)
Management Discussion and Analysis
For the six months ended October 31, 2007 Page 5 of 10
Pursuant to a farm-out and option agreement dated Feb. 17, 2006, between ISX Oil & Gas Inc. (“ISX Oil”),
a wholly owned subsidiary of Potash One Inc., and an arms length private company (“Privco”), ISX Oil
granted Privco the option to earn a 25-per-cent working interest in a proposed horizontal well on the
company's Ingoldsby oil and gas property located in southeast Saskatchewan by paying 50 per cent of the
costs of drilling, completing and equipping a horizontal well, as proposed by ISX Oil, the operator. The
well was drilled successfully in early 2007 and is scheduled for equipping and facility construction subject
to financing of all partners' respective interests. The gross costs for completing equipping and facility
construction have been estimated at $160,000. In addition, depending on the amount of associated water
generated from the well, ISX Oil may either drill a disposal well at a gross cost of approximately $435,000
or seek to use a neighboring disposal facility. Approximately $71,527 is receivable by ISX Oil from its
farm-in partners.
Ingoldsby North, Saskatchewan
ISX Oil holds 280 acres gross, 140 acres net to ISX Oil which were acquired at a Saskatchewan Crown
land sale in 2006. The lands were acquired for oil potential in the Frobisher-Alida and Kisbey formations.
ISX Oil has received a 3D Seismic AFE (Authority For Expenditure) in the amount of $119,750 (net to ISX
Oil) from its joint venture partner in the property, with a view to identifying horizontal drill locations on the
lands. ISX Oil is presently evaluating its position on this AFE, and will respond to its partner in due
course.
Gainsborough, Saskatchewan
ISX Oil holds two quarter-sections (298 acres gross, 149 acres net to ISX Oil) which were acquired at a
Saskatchewan Crown land sale in 2006 for an aggregate bonus consideration of $23,277 (net to ISX Oil).
ISX Oil holds a 5-15% (on 1/150th of monthly production in barrels) in 50% of the 80% Crown portion of
production (net 40% of production). A vertical well was drilled at 02-07-002-30W1M by an industry
partner in 2006, under a farmout agreement with ISX Oil, and the well was completed and tested in the
spring of 2007 in the Birdbear, Alida and Frobisher zones. The well is presently shut-in awaiting a
recompletion attempt in the Frobisher formation.
Belle Plaine, Saskatchewan
ISX Oil acquired 13 quarter-sections of land (2,080 acres gross/net to ISX Oil) via exploration license
Block 4082 at the Saskatchewan Crown land sale held in June 2007. The bonus consideration and rental
paid for the land was $146,525 (net to ISX Oil). The lands were acquired for gas potential in the Colorado
group, as well as other shallow gas zones. A geophysical evaluation is anticipated to be conducted during
fiscal 2008. Subsequent to the period, ISX Oil received an $11,252 refund from Saskatchewan Industry
and Resources as the Crown determined that one of the quarter-sections was not part of the sale and
accordingly ISX Oil’s holdings now total 12 quarter-sections.
Yukon Mineral Exploration Property
The Company holds a 100-per-cent interest in the McConnell River property located in the Watson Lake
mining district, Yukon. It acquired this interest in 2004.
The property is accessible by road from Ross River, Yukon, via the South Canol Highway and a four-byfour
bush road. The property covers several occurrences of massive sulphide mineralization along a
volcanic-sediment contact and has undergone previous exploration campaigns including geophysical
surveys, trenching and diamond drilling. The company intends to conduct exploration on the property to
determine whether the claims are prospective for silver- and gold-bearing massive sulphide lenses As
consideration for the acquisition of the McConnell River property, the company paid $25,000 to the vendor
upon execution of a purchase agreement and property transfer documentation.
POTASH ONE INC.
(formerly ISX Resources Inc.)
Management Discussion and Analysis
For the six months ended October 31, 2007 Page 6 of 10
The Company renewed the claims during the year ended April 30, 2007. The Company is seeking to joint
venture this property and has no expenditure anticipated in the current fiscal period.
The Company holds no interest in producing or commercial ore deposits. The Company has no production
or other revenue. There is no operating history upon which investors may rely. Commercial development of
any kind will only occur in the event that sufficient quantities of ore containing economic concentrations of
mineral resources are discovered. If in the future a discovery is made, substantial financial resources may
be required to establish ore reserves. Additional substantial financial resources will be required to develop
mining and processing for any ore reserves that may be discovered. If the Company is unable to finance the
establishment of ore reserves or the development of mining and processing facilities, it may be required to
sell all or a portion of its interest in such property to one or more parties capable of financing such
development.
Selected Annual Information
The following table provides a brief summary of the Company’s financial operations. For more detailed
information, refer to the Financial Statements.
Year Ended
April 30,
2007
Year Ended
April 30,
2006
Year Ended
April 30,
2005
Total revenues $ - $ - $ -
Net income (loss) before other items (460,309) (205,739) (93,356)
Net income (loss) (425,497) (205,739) (93,356)
Basic and diluted loss per share (0.03) (0.02) (0.02)
Total assets 3,709,735 1,368,593 31,552
Total long-term liabilities -- 153,658 172,022
Total current liabilities 224,939 134,757 188,734
Cash dividends -- - -
The Company’s sole source of revenue to date has been interest earned from cash held in banks.
The Company’s accounting policy is to record its mineral properties at cost. Exploration and development
expenditures relating to mineral properties are deferred until either the properties are brought into
production, at which time they are amortized on a unit of production basis, or until the properties are sold
or abandoned, at which time the deferred costs are written off.
The Company has not paid any dividends on its common shares. The Company has no present intention of
paying dividends on its common shares, as it anticipates that all available funds will be invested to finance
the growth of its business.
Results of Operations
The Company incurred a loss of $404,510 (2006 - $76,188) during the six months ended October 31, 2007.
Some of the significant expenses are as follows: paid or accrued $130,563 (2006 - $33,190) in accounting,
legal and audit fees, $12,000 (2006 - $12,000) in management fees, $11,100 (2006 - $11,100) in premises
rent and communication expenses, $22,661 (2006 - $11,862) in regulatory and transfer agent expenses,
$194,986 ($nil – 2006) in stock-based compensation expense and $30,712 (2006 - $10,175) in travel and
promotion. The most significant variances occurred in the increase in stock based compensation expense
from $NIL in 2006 to $194,986 in 2007, which was attributable to the granting of a significant number of
options during the current period whereas no options were granted in 2006 and $100,000 of the expense
was attributable to the expense incurred by the Company in paying out a stock appreciation right which
resulted in the cancellation of 500,000 stock options at $0.50 per share. Another significant variance
occurred in the significant increase in accounting, legal and consulting expense from $33,190 in 2006 to
POTASH ONE INC.
(formerly ISX Resources Inc.)
Management Discussion and Analysis
For the six months ended October 31, 2007 Page 7 of 10
Results of Operations (continued)
$130,563 in 2007, which is primarily attributable to the increased business requiring increased professional
services (legal services represented $67,240 of the amount) and the Company had three additional
consultants in the period, as compared to 2006, that were paid a total of $41,000.
Summary of Quarterly Results
Three
Months
Ended
October 31,
2007
Three
Months
Ended
July 31,
2007
Three
Months
Ended
April 30,
2007
Three
Months
Ended
January 31,
2007
Total assets $3,923,323 $4,039,188 $3,709,735 $1,187,826
Mineral and oil & gas properties and
deferred costs
1,547,692 1,415,231 575,031 345,475
Working capital (deficiency) 2,094,751 2,382,554 2,838,238 712,253
Shareholders’ equity 3,763,970 3,888,011 3,484,796 1,057,728
Revenues - - - -
Net Loss (270,649) (135,454) (349,047) (262)
Earnings (loss) per share (0.011) (0.005) (0.03) (0.00)
Three
Months
Ended
October 31,
2006
Three
Months
Ended
July 31,
2006
Three
Months
Ended
April 30,
2006
Three
Months
Ended
January 31,
2006
Total assets $1,221,605 $1,375,070 $1,368,593 $735,340
Mineral and oil & gas properties and
deferred costs
348,010 213,135 128,705 83,789
Working capital (deficiency) 655,980 964,304 1,105,131 567,008
Shareholders’ equity 1,003,990 1,019,940 1,080,178 500,897
Revenues - - - -
Net Loss (15,950) (60,238) (95,760) (49,762)
Earnings (loss) per share (0.00) (0.00) (0.02) (0.00)
Liquidity
The Company has financed its operations to date primarily through the issuance of common shares and
securities convertible to common shares, loans and advances from related parties. The Company continues
to seek capital through various means including the issuance of equity and/or debt.
The financial statements have been prepared on a going concern basis which assumes that the Company
will be able to realize its assets and discharge its liabilities in the normal course of business for the
foreseeable future. The continuing operations of the Company are dependent upon its ability to continue to
raise adequate financing and to commence profitable operations in the future.
April 30,
2007
April 30,
2006
Working capital $2,838,238 $1,105,131
Deficit (4,608,779) (4,183,282)
POTASH ONE INC.
(formerly ISX Resources Inc.)
Management Discussion and Analysis
For the six months ended October 31, 2007 Page 8 of 10
Liquidity – continued
Net cash utilized during the six months ended October 31, 2007 was $806,419 compared to net cash used
of $370,248 during the six months ended October 31, 2006. The increase in cash used in 2007 is primarily
attributable to the significant investment in resource property interests in the current period in 2007
compared to 2006: $972,661 in 2007 compared to $219,035 in 2006.
Financing activities consisted of a related party advance of $(12,000) (2006 - $12,000); share subscriptions
collected of $(54,300) (2006 – $NIL); and common shares issued of $621,000 (2006 – $NIL).
Capital Resources
During the six months ended October 31, 2007, the Company issued the following shares:
Pursuant to exercise of warrants – at $0.12 2,550,000 $ 306,000
Pursuant to a exercise of stock options – at $0.30 800,000 $ 240,000
Pursuant to exercise of warrants – at $0.60 125,000 $ 75,000
Pursuant to a exercise of stock options – at $0.80 15,000 $ 12,000
Transferred from contributed surplus on exercise
of stock options
$ 257,566
3,490,000 $890,566
On December 19, 2007, the Company announced a non-brokered equity private placement of up to 4.15
million units at a price of $2.65 per unit for gross proceeds of $10,997,500. Each unit shall consist of one
common share and one-half common share purchase warrant. Each whole warrant shall be exercisable for
one common share at a price of $3.25 per share for a period of 15 months following closing. In the event
that the common shares close at $4.00 or greater for 10 trading days, subsequent to the expiry of the 4
month hold period, the expiry date may be accelerated by the Company to a period of 30 days (the
"Placement"). Potash One shall pay a finder's fee of 5.0% of the gross proceeds of the Placement. The
Placement is subject to certain conditions including, but not limited to the receipt of all necessary
regulatory approvals. The net proceeds of the Placement will be used to expedite further exploration and
development of Legacy potash project in Saskatchewan, and for general corporate purposes.
Related Party Transactions
The Company owes $16,000 to related parties as at October 31, 2007. This amount is owed to a current
director.
During the six months ended October 31, 2007, the Company incurred management fees of $12,000 (2006 -
$12,000) to a director of the Company and incurred accounting fees of $12,000 (2006: $10,000) to an
officer of the Company.
These transactions are in the normal course of operations and are measured at the exchange amount which
is the amount of consideration established and agreed to by the related parties.
Financial Instruments
The Company's financial instruments consist of cash, advances, receivables, accounts payable and accrued
liabilities, and amounts due to related parties. Unless otherwise noted, it is management's opinion that the
Company is not exposed to significant interest, currency or credit risks arising from these financial
instruments. The fair value of these financial instruments approximates their carrying values, unless
otherwise noted.
POTASH ONE INC.
(formerly ISX Resources Inc.)
Management Discussion and Analysis
For the six months ended October 31, 2007 Page 9 of 10
Subsequent Event
See Note 5 of the Financial Statements.
Off Balance Sheet Arrangements
There are no off-balance sheet arrangements to which the Company is committed.
Critical Accounting Estimates
The fair value of all shares purchase options granted is expensed over their vesting period with a
corresponding increase to contributed surplus. Upon exercise of share purchase options, the consideration
paid by the option holder, together with the amount previously recognized in contributed surplus, is
recorded as an increase to share capital.
The Company uses the Black-Scholes option valuation model to calculate the fair value of share purchase
options at the date of grant. Option pricing models require the input of highly subjective assumptions,
including the expected price volatility. Changes in these assumptions can materially affect the fair value
estimate and, therefore, the existing models do not necessarily provide a reliable single measure of the fair
value of the Company’s share purchase options.
The recoverability of the amounts capitalized for the undeveloped oil and gas properties is dependent upon
the determination of economically recoverable reserves, confirmation of the Company's interest in the
underlying properties, the ability to obtain the necessary financing to complete their development, and
future profitable production or proceeds from the disposition thereof.
Disclosure Controls and Procedures
At the end of the period covered by this MD&A, an evaluation was carried out, under the supervision of
and with the participation of the President and the Chief Financial Officer, of the effectiveness of the
design and operations of the Company’s disclosure controls and procedures. Based on that evaluation, the
President and Chief Financial officer concluded that the design and operation of these disclosure controls
and procedures were effective in ensuring that information required to be disclosed by the Company in
reports that it files with or submits to the Canadian securities administrators is recorded, processed,
summarized and reported within the time periods required.
It should be noted that, while the Company’s President and Chief Financial Officer believe that the
Company’s disclosure controls and procedures provide a reasonable level of assurance that they are
effective, they do not expect that the Company’s disclosure controls and procedures, or internal control
over financial reporting, will prevent all errors and fraud. A control system, no matter how well conceived
or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system
are met.
Share Capital
Authorized:
Unlimited number of Common shares without par value
50,000,000 Preferred Class B shares with a par value of $5 each
POTASH ONE INC.
(formerly ISX Resources Inc.)
Management Discussion and Analysis
For the six months ended October 31, 2007 Page 10 of 10
Share Capital - continued
Issued Common Shares:
Number of
Shares Amount
Balance, April 30, 2007 21,418,422 $ 7,640,790
For cash:
Options exercised – at $0.30 800,000 240,000
Warrants exercised – at $0.12 2,550,000 306,000
Warrants exercised – at $0.60 475,000 285,000
Options exercised – at $0.80 15,000 12,000
Warrants exercised – at $1.00 68,932 68,932
25,326,354 $ 8,552,722
Balance, December 30, 2007
Commitments:
Share Purchase Warrants
At December 30, 2007,7,592,068 share purchase warrants were outstanding. Each warrant entitles the
holder to purchase one common share as follows:
Number Exercise Price Expiry Date
7,161,000 $0.60 April 20, 2008
431,068 $1.00 May 29, 2008
7,592,068
Stock Options
At December 30, 2007, 2,485,000 stock options were outstanding:
Number
Exercise Price Expiry date
Directors and Officers 1,385,000 $0.80 June 18, 2009
Directors and Officers 75,000 $1.75 October 31, 2010
Consultants 400,000 $0.80 June 18, 2009
Consultants 525,000 $1.75 October 31, 2010
Consultant 100,000 $0.75 April 20, 2009
2,485,000
I dont think many people realize just how serious Potash One is about getting some production going.
The strategic assessment study and siesmic should be nearly complete.
Potash One will have resources in the proven catagory and bankable figures.
The drill holes while providing more data will be production holes.
Very little news since the new name, that should change...
News Bulletins
Date MT Sym Company Price Type Headline
2008-01-03 14:11 KCL Potash One Inc 4.32 Private Placement Potash One private placement correction
2008-01-02 14:44 KCL Potash One Inc 4.32 Private Placement Potash One 4.15-million-share private placement
2007-12-31 14:00 KCL Potash One Inc 4.07 SEDAR Interim Financial Statements SEDAR Interim Financial Statements
2007-12-31 14:00 KCL Potash One Inc 4.07 SEDAR MD & A SEDAR MD & A
2007-12-19 08:55 KCL Potash One Inc 3.07 News Release Potash One arranges $10.99-million placement for Legacy
2007-12-06 14:45 KCL Potash One Inc 2.83 New Listing Potash One new listing amendment
2007-12-06 12:26 KCL Potash One Inc 2.83 News Release Potash One says new name suits primary business
2007-12-05 14:37 KCL Potash One Inc New Listing ISX Resources changes name to Potash One
Seismic has been underway since November and nearly completed better check who your cousin is working for because its not Potash One.
Why Fertilizer Will Continue to be a Winner; and Why Food Inflation Won't be Stopped by the Fed
Tuesday, December 18, 2007
http://www.fundmymutualfund.com/2007/12/why-fertilizer-will-continue-to-be.html
I have talked about this subject of resource shortages relentlessly in the blog, but now the mainstream press and 'academic studies' are seeing the strains on our food supply by a 'World of Shortages'. Our inflation this time is not due to an overheated economy like past cycles but demographic worldwide trends (the world was not built for 7 billion plus people, with >50% urbanized which is where we are headed within a decade); this is why I argue the Fed just needs to forget about inflation (it is powerless to stop the trends behind it) and work on growth. It would also help if our gosh darn politicians did not encourage programs that diverted food supply away from food and into energy, especially such inefficient things as corn ethanol but votes are votes, and they will be bought off any way they can in Iowa, to the detriment of us all. It is one thing to put sarcastic comments into a blog, but these are truly very bad things happening that our politicians are in fact encouraging (they kill the solar incentive in the recent tax bill? they keep subsidizing the bad types of energy and call this a 'victory'?) What a joke. Just like the mortgages, until it gets so terrible that wide parts of our population suffer and raise hell, then they will reverse course - and look back at these type of energy bills and say "so and so is to blame for such a bad decision". Check back in 3-4 years, trust me, this will happen.
These are not things that get fixed if China GDP drops from 12% annual to 3% or US "slows down". This is what "those in the know" either don't know or are ignoring. And again we move to a 'reactive' situation than 'proactive'. I am not sure what it will take to put this on the radar, since people unable to pay for food in the lower tranches of society won't affect the investment banks in New York and thus do not require any urgent action or Fed hand holding. As I have stated, this is incrementally happening year by year (all this inflation, not just food), but now it's really starting to accelerate and affect much larger swathes of people. And this is why the economy will be issue #1, #2, and #3 by the time the general election is in full swing. I expect to see an angry electorate in fact.
First, World Food Supply is Shrinking U.N. Agency Warns
In an “unforeseen and unprecedented” shift, the world food supply is dwindling rapidly and food prices are soaring to historic levels, the United Nations’ top food and agriculture official warned Monday.
The changes created “a very serious risk that fewer people will be able to get food,” particularly in the developing world, said Jacques Diouf, head of the United Nations Food and Agriculture Organization.
The agency’s food price index rose by more than 40 percent this year, compared with 9 percent the year before — a rate that was already unacceptable, Mr. Diouf said. New figures show that the total cost of food imported by the neediest countries rose 25 percent in the last year, to $107 million.
At the same time, reserves of cereals are severely depleted, the agency’s records show. World wheat stores declined 11 percent this year, to the lowest level since 1980. That corresponds with 12 weeks of the world’s total consumption, much less than the average of 18 weeks’ consumption, in storage during the 2000-2005 period.
There are only 8 weeks of corn left, down from 11 weeks in the same five-year period.
Prices of wheat and oilseeds are at record highs, Mr. Diouf said Monday. Wheat prices have risen by $130 a ton, or 52 percent, since a year ago. United States wheat futures broke $10 a bushel for the first time Monday, a psychological milestone.
Mr. Diouf said the crisis was a result of a confluence of recent supply and demand factors that, he said, were here to stay.
On the supply side, the early effects of global warming have decreased crop yields in some crucial places. So has a shift away from farming for human consumption to crops for biofuels and cattle feed. Demand for grain is increasing as the world’s population grows and more is diverted to feed cattle as the population of upwardly mobile meat-eaters grows.
“We’re concerned that we are facing the perfect storm for the world’s hungry,” said Josette Sheeran, executive director of the World Food Program, in a telephone interview. She said that her agency’s food procurement costs had gone up 50 percent in the last five years and that some poor people were being “priced out of the food market.”
To make matters worse, high oil prices have doubled shipping costs in the last year, putting stress on poor nations that need to import food and the humanitarian agencies that provide it.
Already “unusual weather events,” linked to climate change — like drought, floods and storms — have decreased production in important exporting countries like Australia and Ukraine, Mr. Diouf said.
Next, Food and Fuel Compete for Land
Shopping at a Whole Foods Market in suburban Chicago, Meredith Estes said food prices have jumped so much she has resorted to coupons. Charles T. Rodgers Jr., an Arkansas cattle rancher, said normal feed rations so expensive and scarce he is scrambling for alternatives. In Oregon, Jack Joyce, the owner of Rogue Ales, said the cost of barley malt has soared 88 percent this year. (ok I have to admit I laughed at the first sentence... poor lady had to resort to coupons at Whole Foods, a very expensive place to shop for you darn yuppie types)
For years, cheap food and feed were taken for granted in the United States. But now the price of some foods is rising sharply, and from the corridors of Washington to the aisles of neighborhood supermarkets, a blame alert is under way.
Among the favorite targets is ethanol, especially for food manufacturers and livestock farmers who seethe at government mandates for ethanol production. The ethanol boom, they contend, is raising corn prices, driving up the cost of producing dairy products and meat, and causing farmers to plant so much corn as to crowd out other crops.
The results are working their way through the marketplace, in this view, with overall consumer grocery costs up roughly 5 percent in a year and feed costs up more than 20 percent.
Now, with Congress poised to adopt a new mandate that would double the volume of ethanol made from corn, ethanol skeptics say a fateful moment has arrived, with the nation about to commit itself to decades of competition between food and fuel for the use of agricultural land.
“This is like a runaway freight train,” said Scott Faber, a lobbyist for the Grocery Manufacturers Association, who complained that ethanol has the same “magical effect” on politicians as the tooth fairy and Santa Claus have on children. “It’s great news for corn farmers, but terrible news for consumers.”
But ethanol critics are not getting much traction with their argument. Last week, the Senate voted 86 to 8 for a new energy bill containing expanded ethanol mandates, and the House is expected to follow suit this week.
Experts with no stake in the argument say ethanol has indeed contributed to rising food costs, but that is only one among several factors. Higher fuel costs are driving up the expense of growing and transporting food. And strong economic growth abroad is increasing demand for agricultural commodities, allowing once-destitute people to augment their diets with meat and dairy.
It is also a tough time, politically, to make a case against ethanol. With continuing turmoil in the Middle East, sky-high gas prices and presidential candidates stumping in Iowa, the heart of the Corn Belt, a new renewable fuel standard has plenty of supporters on Capitol Hill.
“We did get whipped,” said Jay Truitt, vice president of government affairs for the National Cattlemen’s Beef Association. “We continue to be caught up in this fervor, almost spirituality, about ethanol. You can’t get anyone to consider that there is a consequence to these actions.”
He added, “We think there will be a day when people ask, ‘Why in the world did we do this?’”
The bill in Congress would increase the mandate for renewable fuels to a striking 36 billion gallons by 2022. That is far beyond a requirement on the books now for 7.5 billion gallons of ethanol by 2012. Much of the newly required ethanol could be made from agricultural wastes like corn stalks and straw, and its production would not compete directly with food production. But the proposed mandate, known as a renewable fuel standard, also calls for 15 billion gallons of ethanol made from grains, primarily corn.
Mark W. Leonard, who raises cattle and corn in western Iowa and owns a stake in several ethanol plants, said it was “absolutely essential” that the government increase the mandate for ethanol, and he urged Congress to push up the deadlines. (clearly an unbiased opinion) “This is a national security issue more than anything else,” said Mr. Leonard, noting the nation’s dependence on imported oil. “We need to quit sending money to people who want to blow us up.” (of course, the fallback for everyone when questioned - the terrorists will come to our corn fields if we don't go to their corn fields first)
Joe Victor, vice president for marketing for Allendale, an agricultural research firm in the Chicago suburbs, said Midwestern farmers would face a pleasant quandary in the spring in deciding what to plant because wheat and soybean prices are at or near record highs and corn prices remain bullish. “Oh geez, they’ve got money galore,” he said. “The Senate vote for the energy bill was a real confidence builder for the farmer to think, ‘They are not going to pull the rug out from underneath us.’”
Feed costs have increased 25 to 30 percent in the last year, according to David Fairfield, director of feed services at the National Grain and Feed Association. He attributed virtually all of the increase to the demands of the ethanol industry
As the debate continues, one thing is certain: American shoppers are increasingly frustrated over rising prices. “It’s the staples, the cheeses, the milks and produce,” said Ms. Estes, shopping at the Chicago-area Whole Foods. “It’s going up, and my grocery bill at the end, it’s like, ‘Are you kidding me?’”
If this blog is around in 3 years, let's check back and ask in joining Mr Truitt "Why in the world did we do this?’. So when you see your politicians on local and national TV trumpeting this plan, unless you live in a corn filled state, I'd urge you to boo and hiss. And call them.
Until then I will just complain in the blog and continue to look for the people with deeper and deeper pockets (farmers) and find the items they will be throwing our tax money at (fertilizer).
What a system.
Ron Hiebert on CFCW this morning... food (ag) cycle has a long life left in it
Pretty clear already what they have...
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25632990
From pages 62 and 63 of potash one's 43-101 on there property it states that the "total -K2O tonnage for the indicated resource is 211.38 million tonnes @ 16.6% (185 million of the K2O tonnage is at a grade of 20.5%); and the K2O resource from that is 57~ million tonnes K2O—with a 43.45 million tonnes of K2O with Freehold Exclusion (?)—the official # used (note: 40million of the tonnes is from higher 20+% grade)
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23629309
Data from the seismic survey will be used, among other things, to further define the thickness, continuity and variation of the Patience Lake and Belle Plaine potash-bearing beds. The new 3-D seismic data will provide subsurface information to facilitate the assessment of geologic conditions for potential future solution mining operations.
John and I will come help you :)
Soaring costs put state's farmers at crossroads
By Robin Acton TRIBUNE-REVIEW Sunday, January 6, 2008
http://www.pittsburghlive.com/x/pittsburghtrib/news/cityregion/s_546094.html
"As they choose their crops and compile budgets, they are facing escalating costs for fertilizer, higher prices for fuel to run their equipment and haul their products to market and the likelihood of narrow profit margins despite good prices for commodities such as corn, soybeans, wheat, milk and eggs.
Agricultural experts insist that farmers must embrace new technology and renewable energy sources to adapt in
an industry on the brink of dramatic change.
Costs are more expensive -- probably about 20 percent to 25 percent higher than last year," he said. "A lot of them haven't worked through their budgets yet and when they do, people are going to go into shock."
Cost of planting will rise because of supply prices
Article published Jan 6, 2008
Columbus, Ohio - Grain prices may be on the way up this winter, but so is the cost of planting the 2008 crop.
Corn production costs are predicted to be 24 to 35 percent higher in 2008 than in 2007, said Ohio State University extension economist Barry Ward.
Soybean costs are projected to be 23 percent higher.
Dramatically higher fertilizer costs, especially potassium and phosphorus, and higher fuel prices are the primary reasons input costs will be higher for this year's crop.
"The average price of phosphorous fertilizers is expected to increase approximately 65 percent from 2007 to 2008. Potassium prices are expected to increase 40 percent from 2007 to 2008," Ward said.
Seed prices are also increasing, fueled by the increasing number of seed packages that contain only transgenic trait hybrids, he said.
"Farmers' choices when it comes to seed selection are becoming more limited, as non-transgenic hybrids are being replaced by seed with single and stacked traits," Ward said. "Seed company data indicates prices for 2008 to be 5 to 10 percent higher."
To save money, farmers should:
Use non-transgenic hybrids if they have performed well in tests.
Consider crop protection chemicals as an alternative to the transgenic hybrids. Chemical prices have remained flat or lower over the last two years.
Make fertilizer evaluation a year-round activity. Spread out purchases over the year to reap a better average price.
Consider manure as an alternative to high-priced fertilizer.
Use cover crops as an alternative nitrogen source.
Thanks, was that from Dec 20th? ;)
For the answer to that I would look at the pattern set by EMC.
I am quite sure Paul could present as good a case for KCL as Dawn did for API.
Clear out that wine cellar Terry and stock it with this...
Thanks for posting.
Mineral Deposits on TSX now
Sabodala Gold Project
At the Sabodala Gold Project, located in the far west of Senegal about 650 kilometres southeast of the capital Dakar, MDL is establishing a substantial mining operation. The mining concession covers an area of 20.3km2 and includes both the Sabodala and Niakafiri deposits. In October 2007, the total mineral resource estimate was updated to 2.74 million ounces gold.
The latest open pit mineable reserve for the Sabodala deposit of 1,264,000 ounces at a 0.8g/t cut-off, together with the Niakafiri deposit of 142,000 ounces at a 0.5g/t cut-off, extends the Sabodala Gold Project above 1.4 million ounces, with significant new drilling results yet to be included. The total Sabodala project open pit reserve is 18.3 million tonnes grading 2.4g/t gold.
The planned production rate is 2.0 million tonnes per annum producing about 150,000 ounces of gold from an on-site processing plant. MDL is well into the construction phase and the first gold pour is anticipated in the September quarter of 2008. The Sabodala Gold Project processing plant and associated infrastructure will establish a commanding presence in the region from which to build a substantial gold business.
Crude Oil Targets $125, Global Production Future Shows Diffuse Picture
By Sven Ridley-Wordich 04 Jan 2008 at 12:12 PM GMT-05:00
http://www.resourceinvestor.com/pebble.asp?relid=39233
AMSTERDAM (ResourceInvestor.com) -- Crude oil prices have hit a new all-time record high, after breaking through the $100 per barrel mark on January 3.
NYMEX futures reached a level of more than $100 on Thursday, based on increased violence in the Niger Delta of Nigeria that removed 500,000 barrels per day (bpd) from the market, and a mixed report coming from the U.S. Department of Energy (DoE), which indicated lower than expected strategic oil stocks in the U.S.
The U.S. DoE reported that overall stocks had dropped by more than 4 million barrels, which according to analysts, is largely based on the increased refining of crude oil due to winter demand. This has been supported by other reports that indicated a higher refining utilization in the U.S.
Current winter weather in major parts of the EU has also slightly contributed to the price increase. Until now, the crude oil has slightly settled for a price level of the upper $99 per barrel, but more new price increases are on the horizon.
In the coming days, it will become clear whether the market will also react to negative news coming from OPEC’s largest oil producer, Saudi Arabia - the country indicated that the planned start up of the Khursaniyah oil field is being delayed. Officials of the Saudi state-owned oil giant Saudi Aramco have informed the press that it is in the process of bringing on stream its 500,000 bpd Khursaniyah oil field, which was originally due for completion in late 2007, but no specific dates have been given for a new start-up date of production, and the market is eagerly awaiting the success.
As Saudi Arabia is still the kingpin of world oil, its crude oil production projects are eagerly awaited, as they are the main source for new production to counter still growing global demand. The development covers the onshore Abu Hadriyah, Fadhili and Khursaniyah fields, and will also add capacity to process 1 billion cubic feet a day of associated gas and 80,000 bpd of condensates.
Saudi Arabia, currently producing around 9 million bpd, is planning to reach a level of 12.5 million bpd production capacity around 2010. The ongoing problems with Khursaniyah could not bode well for other new operations.
In a reaction to questions asked by the press, Saudi Aramco reiterated that it still is able to put another 1 million bpd of light Arab crude on the market. This statement, however, stands contrary to other analysis, which shows that the country is producing at its peak levels already. The same situation, as reported before, is the case for most other oil producers, such as Nigeria, Iran, Venezuela, Algeria and Libya.
The only possible relief could come from OPEC’s new member, Angola, where additional production is scheduled to come on-stream in 2008. The latest figures show that the country at present is exporting more than 90% of its total production of 17 million bpd.
Angola's Oil Minister Desiderio Costa stated that worldwide demand for Angolan crude has been unexpectedly high, pushing the country to increase production as much as possible. However, Costa reiterated that additional production volumes would only become available as much as the national energy situation would allow. In other words, production will be based on a responsible management of its own oil resources available.
Before the end of 2008, Angola expects to produce around 1.8 million bpd. At the same time, new blocks will come available too, such as the central block of Cabinda zone, Kwanza onshore zone blocks, shallow waters block 9, deep waters blocks 19, 20 and 21, ultra-deep waters blocks 46, 47 and 48.
But not just OPEC production is under pressure. China, currently the world’s second largest oil consumer, and minor oil and gas producer, has reported that its main oil field, Daqing, which is located in the northeast, has produced 41.7 million tonnes of oil and 2.6 billion cubic metres of natural gas in 2007.
The China National Petroleum Corporation (CNPC) reported that volumes have been only slightly above the production target of 41.62 million tonnes of oil, while, and more disconcerting, volumes have dropped by 4% in comparison to the 2006 production. Total production of the Daqing oilfield is already dropping - the 47 year-old field reached its peak in 1975. In 1975, Daqing produced more than 50 million tonnes per year.
News sources reported that China's oil output is expected to have reached 186 million tonnes in 2007, which is only an increase of 1.5% in comparison to 2006, while demand has grown with double figures.
On the horizon, world crude market developments will continue to show an increased tendency for an upward price. Even thouth some speculation is in the current price setting, probably between $5 and $10 per barrel, market fundamentals are indicating further price increases.
Some analysts have indicated that in 2 to 3 years, price levels could be hitting $200 per barrel, if no economic crisis emerges. This doomsday scenario, however, cannot yet be substantiated.
Based on current fundamentals, and the fact that a psychological barrier ($100) has been broken, increases are leaning towards a new barrier of $125. No real factors are available to substantiate when this is feasible, but a harsh winter in the northern hemisphere, in combination with increase violence and instability in OPEC countries, would surely push prices towards the $110 per barrel mark very soon.
Profit taking can put a temporary halt to this but in general, prices will continue to go up.
XLE ...
More Ag discussion on BNN http://broadband.bnn.ca/bnn/?id=2238&vid=25731
Stocks discussed...
Fun - lighter side, 7:50 I loved his comment on George Bush "that was pathetic" then 10:45 when she calls him Don Knocks lol
ALM perked today too, I made a sale at 6.09 for more KCL :)
Don Coxe on BNN 3:30 mark http://broadband.bnn.ca/bnn/?id=2238&vid=25710
Not even close to that yet lol count the companies on both hands
1000's of Uranium companies with squat