AMZ: Right Product, Right Time

SHIRISH VAIDYA, RB Milestone Group (08/05/2010)
"Amazon Mining shares have risen more than 55% over the last week as generally positive news in the conventional potash, nitrogen and phosphate markets have helped lift the broader fertilizer sector. Companies like Amazon offer investors unique specialty fertilizer exposure in Brazil, which imports more than 90% of the potash it uses on an annual basis.

Amazon's slow release, multi-nutrient rich deposit uniquely fits into Brazil's core fertilizer deficiency and substandard soil quality. . .Meanwhile, management continues to evaluate various marketing strategies for its ThermoPotash project. While the potential mine will serve local farming needs, other Brazil-based markets include fertilizer blenders who seek to replace portions of conventional potash used in certain N-P-K blends. In doing so, the market for Amazon's end product could as much as double beyond management's current 1-1.5mm tpy mine plan."

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