Most folks that have been with this Co. know that this is our time of the year. There are similarities as always, Fertilizer sales, Silver profits from fertilizer sales of course, however there are some differences this year and of course this is my opinion. Lets start with fertilizer.
Our distributor, Western Farm Service, has merged with AGRIUM and Crop Production Services. This merger has opened New and exciting, to me anyhow, distribution channels. From the 10Q.
In the second quarter 2008 the parent company of our distributor acquired a major competitor. Early in the third quarter the parent company disclosed plans to integrate the acquired company and its retail outlets into its existing retail distribution system. Prior to the acquisition our distributor and its sister subsidiaries had more than 500 retail outlets nationwide, after the merger there are more than 800 retail outlets nationwide.
Now, Round Up Ready, who is of course Monsato. Field trials have been conducted and have had a positive effect on the Co. for Round up Ready Corn and Soybeans. From the 10Q again.
In the fall of 2007 we began a field evaluation of using GOLD’n GRO 10-0-1+3% Manganese as a manganese fertilizer that could be applied as a spray tank mix with glyphosate(Round Up) on "Round Up" ready corn. This is important because most manganese fertilizers are not compatible with glyphosate in spray tank mixes. The GOLD’n GRO fertilizer was found to be compatible and no phyto-toxicity to the corn plants was experienced. The grower was pleased with the trial results. Subsequent to that, in the first half 2008, the Company has been working with a fertilizer raw material supplier who has put out trials on "Round Up Ready" soybeans in several states. Results have not yet been reported, but the supplier has an extensive nationwide distribution system and is fully capable of introducing the GOLD’n GRO fertilizer in relevant markets in the mid-west and southern United States where soybeans are a major crop.
If the GOLD’n GRO 10-0-1+3% Manganese proves to work with glyphosate for spray application on "Round Up Ready" soybeans, then three large acreage markets will become available for sales development. These are: (1) "Round Up Ready" sileage corn, (2) "Round Up Ready corn for grain, and (3) "Round Up Ready" soybeans. The bulk of acreage for these crops is in the mid-west and southern areas of the United States. There is typically one crop per year, and the demand would be highly seasonal on a relatively large scale, and pre-season manufacturing of product inventory would be required.
That is only step 2 to our growth of the Co. There are 6 more.
But for a moment lets talk about our favorite subject here. Silver. With the increase in fertilizer comes the increase in Silver production also. With the recent scrambling to get into Silver ( poor mans Gold ) which there is a dwinding supply and the recent PR of 2.4 Million ounces/year or 100 times current production of 24,000 ounces At current prices is as the Dr. said in another article Staggering and that wasn't even talking about this. That is another whole subject. Anyhow
At current closing prices of $13.13/ounce X 2.4 mil ounces would be a Staggering, ( love that word ) would be Revs at $31,512,000. And there is more. Whatcha think so far?
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