Club Mulgoa

Friday, January 27, 2012

Food production... phosphate and potash

As the Chinese and Indians become more affluent, as the world population grows and as arable land diminishes or degrades, the more the demand for potash and phosphate to increase the productivity of farms and orchards.

DH touched on PWN so the share price shot up and then another shot with this announcement.

http://www.proactiveinvestors.com.au/companies/news/24591/potash-west-assays-show-broad-potassium-intercepts-at-dandaragan-trough--24591.html

After its IPO at 20c (via IMA) in May 2011, I topped up twice within about 2 weeks because the share price fell below the offer price; first at 17c and then again at 19.5c. Now it is 27.5c. Happy as a sprout! Potash has been one of my most successful strategies for investment in the last 18 months, triggered when BHP signaled how important the commodity is when it made a bid for a Canadian potash company. Read the news! But more importantly, read in between the lines...

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