Potash North

Resource sector investors – take note….

Keep your eye on the Canadian province of Saskatchewan. Saskatchewan is unique in that it is underlain by deposits of Potash. Now, Potash is a generic "catch-all" expression for the minerals Potassium Chloride, Potassium Oxide and also to a certain extent Magnesium Chloride. Potash is vitally important as it is instrumental in helping plants grow better. As developing nations spend more money on eating better and eating more protein, there is a tremendous push to extract more productivity out of global agriculture. The only way to squeeze more productivity out of agriculture is to add fertilizer to the soil. Saskatchewan has seen a quite a rush of late as companies both private and public have flocked in to lay claim to vast tracts of land and the associated potash mineral rights. In fact, even Chinese investment firms have found their way to Saskatchewan to lay claim to potash land claims.

One company that made its debut in the past week is Potash North (TSXv:PON). The stock started trading at 35 cents quickly exploded higher. Potash North has laid claim to a substantial block of property near the town of Esterhazy, Saskatchewan. Esterhazy is already home to a potash mine operated by Mosaic ( NYSE: MOS). This opens the door to the old adage – what better place to explore than right beside an existing mine.

Potash North finished trading this week at C$3.22. The only way to play this stock is to trade. Buy the dips and sell the rallies. Repeat, repeat, repeat. I say this because it takes 7-8 years to build a potash mine so you do not want to hold these upstart potash plays as a classic investment in your portfolio. There are a number of other potash plays in Saskatchewan to also take a look at. In the weeks to come I shall be profiling these at www.themarkettraders.com. Stay tuned…. Read more »