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

Intraday
3 month Candlestick with volume

3 month Bollinger Bands,RSI, S Stochastic and 50 days MA

Charts - 2 days

Plus market trades Number of people who have visited this thread    

18.75 - 19.50p +0.675p

Is looking better than late last week Friday

Potash corp bullish on fertilizer prices.

A rebound in fertilizer demand will tighten global potash supply and drive prices up in the second half of the year -- resulting in a "very promising time," the chief executive of Potash Corp. of Saskatchewan Inc. says.

As global food production ramps up coming out of an economic slump, the fertilizer market is approaching a critical milestone in which demand returns and supply is constrained, PotashCorp president and CEO Bill Doyle said. "Recent supply and demand developments lead us to believe we are rapidly approaching that important juncture," he said.

I can't understand why the big boys aren't having a look at SKR at this price. Even if they paid 50p per share that would be nothing compared to the size of the site.

I can only assume that the director holding would scupper any such approach.

Bargain at this price though, and my largest holding now.

Good for SKR, but not for bread eaters ...........

From the FT.com .......

Rise in wheat prices fastest since 1973
By Javier Blas in London and Isabel Gorst in Moscow

Wheat prices have seen the biggest one-month jump in more than three decades on the back of a severe drought in Russia, prompting warnings by the food industry of rising prices for flour-related products such as bread and biscuits.

Food executives are also warning about surging prices for feeding and malting barley, which could push higher the retail cost of products from poultry to beer.

European wheat prices jumped 8 per cent on Monday to 211 a tonne, the highest in two years. Wheat prices have risen nearly 50 per cent since late June. Crop failures and a price rally have revived memories of the 2007-08 global food crisis, which saw the cost of agricultural commodities from corn to rice surge to record highs and food riots in countries from Haiti to Bangladesh.

This is the fastest wheat price rally we have seen since 1972-73, said Gary Sharkey, head of wheat procurement at UK-based Premier Foods, which makes the popular Hovis brand of bread.

The industry will be unable to ignore a 50 per cent rise in wheat prices, Mr Sharkey added, echoing a view widely shared by other food industry executives.

The rally comes as the worst heatwave and drought in more than a century continues to devastate grain crops in Russia, Ukraine and Kazakhstan.

The trio are among the worlds top-10 wheat exporters and key suppliers to countries in North Africa and the Middle East the largest importing region in the world. Executives and traders fear the three countries could restrict their grain exports or even impose an export ban in an effort to keep their local market well supplied and prices low.

Dmitry Rylko, the director of the Institute for Agricultural Market Studies, said the market could not ignore the possibility that Moscow would introduce grain export controls as it did during the 2007-08 crisis. The scale of the drought is so severe we must be prepared for any option, he said.

Wheat traders and analysts said Russias wheat production could drop in 2010-11 to 45-50m tonnes, down as much as 27 per cent from last seasons 61.7m tonnes. Ukraine and Kazakhstan would also produce less.

Heavy rains during the planting season are also expected to affect Canadas wheat output. The Canadian Wheat Board, the marketing agency for the countrys farmers, is forecasting a drop of 35 per cent in the wheat harvest.

SKR has certainly been on a toboggan slide for the past 9 months,when the price has more than halved. But ,could be a recovery is on the cards.There certainly is a pickup in buying interest.
One to keep an eye on

Now starting to move,up 1.25 on day

Looking better with the bounce, after the last couple days of pause

An what a finish today at 21.25p, large orders and buying till the end with premium price for the orders at plus market as the shares were in ACTION ( bid and offer price the same)

The potential could be very big for this stock.Especially with the wheat crisis.

It does seem that the market is beginning to wake up as to the enormous potential here.Up again this morning on strong buying.

Russia to impose temporary ban on grain exports

Russia is to ban the export of grain from 15 August to 31 December after drought and fires devastated crops.

Should we be concerned about high wheat prices?

Sparked by drought and fires destroying crops in Russia - the world's third-largest wheat exporter - the biggest monthly increase in the cost of wheat since 1973 has caused bread producers to warn they may have to pass on price increases.

We were also told that chicken, pork and beef prices will soar as well, because wheat is a key component of animal feed.

skin SKR has yet to produce a bank feasibility proposal to raise funds to finance the fertiliser plant so it will be quite some time (2-3YEARS) before they actually produce any fertiliser by which time the current problems in Russia will have been resolved. In the meantime SKR are mining rock which can be processed by other fertiliser plants.

halifax - I don't know much about them, but may have alook over the weekend.

An interesting point re the resolving of Russia's problems. At the rate drought and flood conditions worldwide are developing,the situation could be even worse in a few years.

or not, your guess is as good as the next weather pundit!

halifax

re - (2-3YEARS) before they actually produce any fertiliser by which time the current problems in Russia will have been resolved.

Your prognosys is as BAD as YOURSELF.

If you had any idea how the market works, you would not say that on post 18.

No matter if producing or not, market values at prices at the moment, and one example of it is when OIL prices moving higher, oil companies share price will do the same, no matter if producing or not.

Prognosys:

Think positive and you will go a long way

Think negative and someone will order a box to place you 6 feet under

oh master what a nice chap you are, merely pointing out that SKR are unlikely to produce any fertiliser for at least a couple of years , based on the RNS issued by them earlier this year.

I like the analogy about thinking positive and the box 6 feet under.Life is certainly hard on the faint hearted!
The drawback with SKR seems to be getting up to date news.The last post on their own site was nearly 6 weeks ago. Not good enough

more about wheat prices moving higher

From the TELEGRAPH

Food inflation is a rumble that won't go away
Is the era of cheap food coming to an end? With wheat prices jumping 20pc last week after the failure of the Russian harvest, fears of an imminent food shock have once again emerged.

By Garry White -- 08 Aug 2010

Things aren't as bad as they seem. The current steep jump in prices is likely to be temporary - but the long-term outlook looks very different.

A number of fundamental things are happening that means in the long term, food prices are almost guaranteed to rise. The number of mouths that need feeding is rapidly increasing and the regions with a booming population are where arable land is scarce.

The failure of the Russian wheat harvest has caused a temporary spike in prices, but these high prices won't last for long because of excess production in China and the US.

"Global wheat ending stocks are forecast to decline from 193m tonnes in 2009-10 to 178.8m tonnes in 2010-11," says Luke Chandler, an agriculture analyst at Rabobank. "The relative small decline in global ending stocks is due primarily to a 6.9m tonne surplus in Chinese wheat production and higher-than-expected US production."

This means that the global stocks/use ratio, which measures the proportion of a year's wheat consumption that is in storage, is forecast to be 23pc at the end of the current year, says Mr Chandler. This is well above the 18pc seen in 2006-07 and 17pc in 2007-08.

Current supplies, therefore, look sufficient to meet the Russian shortfall with US farmers gaining from Russia's woes.

Another reason that prices won't stay high for too long is that farmers can easily rotate to different crops.

It takes years to discover and mine a new source of gold or nickel, but a farmer can plant different seeds and boost supply in just one growing season. If the price of wheat remains high, this will prompt farmers to plant more lucrative crops and supply will increase. This will lead to lower prices.

So, the current price spike should not be a cause of great concern. But looking further ahead, there are reasons to worry. Global fundamentals are supportive of a long-term rise in the price of food.

At the moment there are just under 7bn mouths to feed around the world. The United Nations (UN) believes there will be more than 9bn people by 2050. In fact, the UN's Food and Agriculture Organisation (FAO) forecasts that total world demand for agricultural products will jump 60pc between now and 2030 rising much more rapidly than the population.

This rapid increase is because the areas of the world where the population is rising the fastest are also the areas of the world that are moving out of poverty.

Demand for grains in emerging markets increases more than the population because of one simple fact richer people eat more meat. This increases demand for grain feeds for livestock over and above that used for human consumption.

The areas of the world that are expected to have the largest increases in population in the next two decades are Asia and the Middle East.

According to Standard Chartered, Asia is the world's largest food supplier but the possibility of dramatic increases in supply may be limited. That's because there is little land to spare and production is already quite intensive, with good yields.

Things are worse in the Middle East. Studies by the FAO have shown that the region imports more than 50pc of its consumed calories every year. This proportion is expected to increase substantially as its population rises.

According to the CIA World Factbook, a staggering 38pc of people in Saudi Arabia are under the age of 14, compared with just 16.5pc in the UK. This difference in demographics between the region and the West is why the population is rising faster. In the UK, the population growth rate is just 0.28pc, compared with 3.56pc in the United Arab Emirates, 3.5pc in Kuwait and 2.71pc in Yemen.

The reason that the Middle East has to import half of its food from abroad is because of its lack of water.

One tonne of grain requires 1,000 tonnes of water and, according to Standard Chartered's analysis, with agricultural production currently consuming 70pc of all freshwater available globally.

The Middle East may have a lot of oil but it does not have much water. Recent price spikes have raised concerns about food inflation in the short term. It's likely that prices will ease because global stocks of wheat are not as tight as the recent jump in futures contracts would imply.

However, the fear of food shortages has emerged for good reason you should expect prices to be on a slow trend upward for many years to come. But the real concern should be for those living in rapidly gentrifying areas of Asia and the Middle
East.

Shiny future for copper prices

The future is looking shiny for copper prices, according to analysts from RBS. They have noticed that the mining companies have been underperforming in relation to their production targets.

"Despite improved copper demand, an over 160pc increase in the copper price from its 2008 low and that fact that 99pc of the industry makes healthy cash margins at 2010 average prices, second quarter output by most of the major copper producers declined on a quarter-on-quarter and year-on-year basis," said Daniel Major and Nick Moore. This is bullish for prices, which have risen 19pc in the past year.

Tin reaches two-year peak

Tin has crashed through the $20,000 per tonne price mark, reaching a two-year high.

Its bounce has been caused by constrained supplies, particularly in declining exports from Indondesia, the biggest global exporter.

This has led inventories at the London Metals Exchange to decline, with stockpiles falling by 50pc since their seven-year high at the beginning of the year. Demand from manufacturers has been rebounding, especially in the Japanese electronics sector.

The chart has change on the trend into UPTREND with a bullish MACD