Allana Potash fka AAA

[motohoude]

Looking at the news release claimed Uralkali production cost of $65 per tonne, I must deduce that if it is correct, it is at the plant FOB and not at main market distribution hub. Reading into it on their website, the raw material is 300-400 meters deep, and is manually excavated then sent to the surface via conveyor belts. Then a complex chemical process takes place to separate the valuable material from the rock itself.
I fail to see how this process can cost so little per ton, compared to AAA solution mining and virtually zero energy cost solar evaporation ponds. I can see manpower costs in Russia dirt cheap, around the same for Ethiopian labour force.
In the wake of this cartel breakdown, I think AAA will weather the storm and progress to production. The low CAPEX and OPEX will surely secure financing shortly and still represent a golden opportunity even at $300 per ton.