Trigon: Re-visited
Sunday, January 25, 2009 at 4:44PM
Uranium Stocks in Other
Trigon Chart 26Jan09

One of our readers, who is a big fan of Potash has sent us this article which we are posting for your information and enjoyment. This is the opinion of the author and not uranium stocks

I wrote this one myself. Please feel free to post it, edit it, or use it however you like. They have just under 3 million pounds of NI-43-101 compliant uranium, plus own 38% with an option to take 50% of this exciting play in New Mexico:

American Company traded on the TSX Venture Exchange:

Intercontinental Potash Corp (Trigon - TEL.V) Review

A review of the technical reports as well as the research the University of Colorado did on Polyhalite. The just of it is that Polyhalite was proven to be an effective and superior fertilizer over potash, however, by the time the research was completed, major discoveries of Potash were made in Saskatchewan and the former USSR, which negated the appetite to invest in this area. Fast forward to today, while sales of Potash are slowing due to Farmers inability to access the credit they typically use to buy Potash, and repay after their sales of the yield, Potash producers are shutting down much of their production in an attempt to curtail falling prices (expected to ease in the 3rd quarter of 2009). What many believe is that the farmers non-use of potash fertilizers this year will result in a significantly smaller crop, coupled with what is already historically low inventories of grains in reserve. This will contribute to a potential global famine - a food crisis of sorts, which will rival and exceed the rice wars of 2007. The 2010 crop season will see a return of the frenzied buying of Potash by farmers to address this problem (assuming they can access credit - likely government credit), but they will be buying into reduced inventories due to all global Potash producers cutbacks in production. Also, I believe it will take 2 full growing seasons and Potash fertilizer applications for Farmers to get their soil balance back to levels of 2007, meaning there will at the very least be significant and unprecedented demand for Potash fertilizer products at least into 2012/2013.

Polyahilte's properties show it is more versatile than that of Potash. It can be applied in areas of high rainfall, high acidic soils (places like Brazil, India, and Southern China), and can be used an and acceptable Organic food production fertilizer. As compared to most other fertilizers, it is also Chloride (toxin) free, which increases its appeal amongst the green crowd. Trigon / Intercontinental has also suggested Polyhalite will retail at a lower cost to farmers than Potash. Therefore its market potential is actually larger than that of the project is projected to produce for around 75 years.

From a Polyhalite production perspective, the report shows that it can be mined through minimally environmentally invasive underground methods, while it's processing only requires it be washed and crushed. There is no requirement for upgrading and refining using toxic chemicals, or other third party agents deemed to be environmentally compromising. As per recent comments made by New Mexico State officials, there is tremendous behind this project, and there is a willingness on the part of the communities which are impacted by the activities of the company to support the approval, development, and (read between the lines) funding of the Trigon / Intercontinental Project.

All in all, this seems like a very solid concept, with strong backing. Had the global recession not hit, Trigon would be easily trading in the $2-$3 dollar range right now. The good news is that markets are forever changing, and you'd have to believe everything was going to zero to think that at some point in time, the markets will reverse course, and trend upwards again. When it does, this company appears to be one that will be a huge beneficiary of that event. On the flip side, as someone else suggested, we may see some relief come sooner rather than later through - believe it or not - the Obama administration, and its related stimulus package(s). Keep in mind, America is the bread basket of the world's grain production, and when threatened by Potash Producers - what is compared to the OPEC Oil Cartel - Canadian, Russian, Belarus, German, and Israeli Potash Company driven supply shock, the most logical response would be to invest in developing and increasing America's own Potash & Polyhalite Fertilizer production which decreases its' dependency on Foreign Fertilizer (aka ENERGY for Humans), creates American jobs, and reduces the carbon footprint of America through decreased need to transport fertilizers from global locations. This will become very important to America’s corporations as it seeks to garner carbon credits. There is only one way to buy into Intercontinental Potash, through Trigon

Please feel free to add your own thoughts to the above commentary.

Have a good one.

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