Floated at 120p on June 08 raising 33.6m to fund the development of a fertiliser factory, has used $5.9m for adquisitions September 08 and said it still had $26.9m left at 30 June 09.

The company has a phosphorous rock deposit in Kazakhstan totalling 800 million tonnes capable of producing fertilisers for the next 56 years.
The deposit lies in a flat lying position on the Kazakh steppes close to surface so will be cheap to mine and the world still needs fertilisers.
Positive points
1. Shallow - 1 to 3m depth. Ultra low cost to extract.
2. Close to Tengiz oil field which has high sulphur content, hence cheap source of sulphuric acid.
3. Located at junction of two main railway lines giving direct access to Russia/China.

Sunkar is suppose to be one of the lowest cost producers in the World at sub $125 per DAP (die-ammonium phosphate) tonne. The average is circa $200 with some producers as high as $300.
The case for phosphate deposits is population growth means more agriculture means more fertiliser needed in the future.
RESUME SKR produce phosphate for DAP fertilizer and have licenses and acrage in Kurdistan to last 50-70yrs producing in excess of 100M tonnes of raw material each year. 160m shares in issue, directors own a significant chunk. Also they have a cheap source of sulphur required to produce the DAP

Phosphorus - its role and nature
Phosphorus (chemical symbol P) is an element necessary for life. Because phosphorus is highly reactive, it does not naturally occur
as a free element, but is instead bound up in phosphates. Phosphates typically occur in inorganic rocks.
As farmers and gardeners know, phosphorus is one of the three major nutrients required for plant growth: nitrogen (N), phosphorus (P) and potassium (K).
Fertilizers are labelled for the amount of N-P-K they contain.
Most phosphorus is obtained from mining phosphate rock. Crude phosphate is now used in organic farming, whereas chemically treated forms such
as superphosphate, triple superphosphate, or ammonium phosphates are used in non-organic farming.
The current major use of phosphate is in fertilizers. Growing crops remove it and other nutrients from the soil... Most of the world's farms do not have or
do not receive adequate amounts of phosphate. Feeding the world's increasing population will accelerate the rate of depletion of phosphate reserves.
and...
resources are limited, and phosphate is being dissipated. Future generations ultimately will face problems in obtaining enough to exist.
It is sobering to note that phosphorus is often a limiting nutrient in natural ecosystems. That is, the supply of available phosphorus limits the
size of the population possible in those ecosystems.

13 May 09 conference - fertilizers link about SKR ....minesite

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They're just playing games with it hoping PI's will sell common with many other stocks atm

It looks like we are going to pay for it with bread and beer prices soon if it carries like this .........


Pakistan wheat crop at risk, says FAO

Pakistan food pricers have started to rise sharply and the upcoming wheat crop is now at risk following the monsoon floods, the United Nations warned today (11 August).

The UN's Food and Agriculture Organisation says 100% crop losses have been recorded in many areas and tens of thousands of animals have been killed.

Nearly 700 000 hectares of standing crops are under water or destroyed and in many cases surviving animals are without feed.

The FAO says the upcoming seasons wheat crop is now at risk in a region that is the bread basket of the country.

oh master do we import wheat from pakistan?

One thing is for sure,the ratchetting up in the pressure to maximise crop output will continue to grow ,especially in view of increasing problems in world weather ,to say nothing of the increasing population issue.You can bet your life that this baby(SKR) will be looked at by some of the bigger players. The fact that it has not already been snapped up can omly be because it is not yet fully operational.

From a farmer type point of view, fertilizer in general has gone from 100/ton to 400/ton in the last few years. Also a very big ICI fert plant closed a few years back at Avonmouth through lack of demand and cheaper imports. With sale prices of less than 100/ton for Wheat for the farmer, sprays and fertilizers are being cut back to miminal input. A sign of the times I'm afraid and goverments burying their heads in the sand in the hope that the seasonal harvest will be enough to feed the ever increasing population. You only have to look around the country side and try to find a dairy cow to see where we are with british milk production.....most of it imported from Poland, therefore no animals needing grass means no fert needed, what grows naturally is sufficient. Just a farmer point of view. BB

Wheat prices have risen from about $450/ton to about $700/ton in the last couple of months,having peaked at over $800. I can't imagine that the future price will be anything but lower.

can only speak from a british point of view and why we're not spending. BB
edit: that wheat price is a trading price, not what the farmer gets...big difference.

True enough,but big business is behind a large % of the farming these days and they must wield a heavy stick I would have thought.

The likes of Tesco, M&S ect, make our farmers jump through hoops so as they can say the product has been produced correctly, usually at a great cost for maybe
1-1.5p extra on the average milk price. It's down to the farmers concerned to produce it efficiently.

halifax

re - Pakistan shortage of wheat - It looks like we are going to pay for it with bread and beer prices soon if it carries like this .........
re - oh master do we import wheat from pakistan?

Or dear dear, did anybody told you that you have a brain as BIG as a PEANUT?

I will explain or go to school as you can not see further than you NOSE.

Shortage of wheat in many places already,
now Pakistan also,
means they will have to buy from somewhere else,
so meaning demand for it,
so prices up Worldwide,
>>>>>> meaning paying more for BREAD and BEER.

Now Keep your mouth SHUT and no FLIES will get in.
or maybe better ask for a BRAIN transplant.

oh master we thought pakistanis eat rice!

Factors pointing to a possible world shortage of grain

1) Russian Drought-wheat exports suspended due to poor harvest.
2)Pakistan floods- many crops ruined.
3)India-floods damaging crops and storage of some grain has been ruined by rotting.
4) China- floods affecting farmers production.
5) Canada- lower harvest due to wet spring.


Fertilisers increase prices ... ahead
The same happen 2 years ago, when the prices of DAP and fertilisers went to the roof.

We are looking for higher fertiliser prices in the next few month.

oh master what a pity SKR isn't producing any fertiliser at the moment.

The bigger picture is this.
There is a "fertilizer frenzy" out there.
With world food shortages owing to drought,flood etc, maximizing crop yield is becoming of vital importance to stave off mass starvation.
It should surprise no one if this stock suddenly takes off.

If anyone thinks that I am overstating the case,then they are not grasping the full scale of the problem facing agriculture. The fact that SKR are not yet producing is obviously the only reason that this take off has not yet occurred.

KEEP an EYE

News today of a rejected offer. BHP bidding for a Chilean potash company. The sector will be rerated ........

"Soc. Quimica y Minera de Chile SA, Chiles biggest fertilizer producer known as Soquimich, rose the most in more than a year after Potash Corp. of Saskatchewan, a Soquimich shareholder, rejected an takeover offer from BHP Billiton Ltd.

Soquimich gained 5.8 percent to 21,200 pesos at 9:32 a.m. New York time in Santiago trading and earlier climbed 6 percent, the biggest intraday advance since June 2009.

Potashs board turned down the unsolicited $39 billion cash offer from BHP as too low, prompting speculation of a higher bid. "

The price up today .75 (4%).with buying picking up at the mo.

The "AT"s have been busy and the share price went into auction ( bid and offer same price 20.75p )

Is that a different story to this one?

The world's largest fertiliser producer, PotashCorp, has rejected a takeover bid worth $38bn (24bn) from Australian mining giant BHP Billiton.

It should perhaps stop the shorters

A LOT OF GOING ON, another pair of companies trying to do a deal .........


Russian fertilizer market closer to a mega merger
Published 17 August, 2010, 11:48

Russia is moving closer to creating a new national fertilizer champion, with Suleiman Kerimovs Uralkali and Silvinit, Russian potash producer, expected to merge in the near future.

Yahoo StumbleUpon Google Live Technorati del.icio.us Digg Reddit Mixx Propeller Russias government is keen to support the fertilizer sector, as it provides the country's third biggest source of export revenues. The prime movers in the consolidation of the sector are billionaire Suleiman Kerimov and his associates, with the Russian metals tycoon having bought a controlling stake in agro-chemicals giant Uralkali.

Now two offshore firms, that are believed to be close to Kerimov, have bought 44% of Silvinit, the country's largest potash producer. This will be most likely added to those 25% in Silvinit Kerimov already owns.

The third piece of the puzzle will be when Uralkali launches a take-over bid for the unlisted Silvinit, which is expected to happen in the coming days. It would create the world's second biggest potash producer, but Dmitry Baranov, an analyst from Finam, believes the Russian anti-monopoly service will allow the deal with certain provisions.

The Federal antimonpoly service will issue detailed instructions concerning a deal to merge Silvinit and Uralkali. Even if a structure with offshore companies is used. There will be strict limits for domestic pricing, with exports accounting for 80-90% of the companies profits.

Agro chemicals are the third biggest export item for Russia after fuel and metals, and the government is keen to encourage its growth. The merged company of Uralkali and Silvinit would hold 30% of global potash reserves and 40% of global exports.

To justify its size, the new company would have to grow both domestically and internationally, with Anna Kupriyanova, a senior analyst at Uralsib Capital, adding that the new market giant will reshape the market itself and also change some regulations in it.

As of today, the share of domestically consumed fertilizer in Russia is 10 % of what is produced in Russia. So, I expect this share will increase to 15-20% within 5-10 years. Obviously, the state will control these prices, and they have always had a huge discount to export prices, but I dont think this will be too negative for fertilizer producers. The export policy will be completely different.

The merger of Silvinit and Uralkali could be just the beginning of consolidation in the fertilizer sector. Recent history in Russia shows, as was the case with energy, that it takes time for a sector to take on a stable form, with the government playing an active role not just in its creation, but also in its operation through influencing domestic prices and export duties.