Brazil Backs AMZ

JARET ANDERSON, Salman Partners (04/08/2011)
"Amazon Mining announced yesterday that the Brazilian state of Minas Gerais (where its Cerrado Verde project is located) has signed an MOU committing to financially support the project. . .this sort of agreement adds to the argument that Amazon is likely the only greenfield potash company able to raise the funds necessary to build its project on its own, while other companies are likely to be dependent upon a financial sponsor and/or partner. We estimate capex at Cerrado Verde of US$281M vs. US$800M–US$2.5B for other conventional potash projects in our coverage universe; we rate Amazon a TOP PICK with a 12-month target price of CAD$11.50/share."

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