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Wednesday, 12/22/2010 4:19:07 PM

Wednesday, December 22, 2010 4:19:07 PM

Post# of 45093
AAA.v

See:
Sizing up the scary end of the risk-reward stock pool
By Gary Lamphier, Edmonton Journal December 14, 2010


http://www.edmontonjournal.com/business/Sizing+scary+risk+reward+stock+pool/3973029/story.html


But if you really like the thrill of in-vesting in exotic locales where more risk-averse investors dare not tread, Allana Potash may offer the biggest bang for the buck.

Recent drilling results from its potash property in Ethiopia have produced promising results, prompting Dundee analyst Richard Kelertas to issue a buy rating on the stock with a 12-month target price of $1.45. Allana's shares closed Monday at just 67 cents apiece.

"We believe Allana is set to have some of the lowest operating costs in the industry given the relative shallowness of the potash mineralization, its plan to use solar evaporation, and relatively cheap labour," says Kelertas, in a recent report.

"The Ethiopian government is supportive of the project and Allana has secured a strategic partner to cover a large part of the mine construction costs, in addition to securing funds to complete the exploration program and the feasibility study. For these reasons, we continue to believe Allana is the best positioned junior potash play of its peers."

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