Belgravia Hartford Cap Inc. (BLGVF)

[investora2z]

As per a recent report, the feasibility of the mines is expected to be completed by August 2013 and the construction is likely to start in March 2014. A company, Yara International, has already agreed to purchase 30% of the mine's production for 15 years, and has inked a $39 million deal for that last year. ICPTF intends to develop the Ochoa Project into a world-class production and distribution facility. The mines hold significant potential. The Pre-Feasibility Study (PFS) indicated 139 million tons of recoverable potash reserves in the proven and probable ore category within the 40-year mine (sufficient for 90 years of production) plan, and an additional 205 million tons of recoverable potash reserves in the mine plan area not included in the 40-year economic model. Expected annual production at full capacity of 843,000 tons comprises of 568,000 tons of SOP and 275,000 tons of SOPM. Full production is likely to be achieved approximately 18 months after plant start up. The expected time for start of production being end of 2015, and 80% capacity may be reached in Q4'2016. Full capacity will be reached by Q2, 2017. The after-tax net present value for the mines is $1.286 billion @10% discount rate. The operation cost is expected to be substantially lower than the industry averages, around $162 per tonne. The projected full capacity capital cost of the project is US$706 million. All these parameters make the stock very good for long term investment. There are, of course, similar potash mining companies e.g. Passport Potash (PPRTF) whose mines hold great potential (after tax value of $2.19 billion) and are at similar stage of exploration. Once the start of the production approaches, these stocks may take off pretty fast. A look at the chart of similar companies indicates that though the gestation period is long, best returns are obtained only by investing at the initial stages.