AMZ: How Blue is the Sky at Cerrado Verde?

JARET ANDERSON, Salman Partners (04/12/2011)
"This morning we published an Amazon note under separate cover titled, How Blue is the Sky at Cerrado Verde. . .the potential upside of Amazon's Cambridge process could allow the company to produce a conventional potassium chloride (KCl) or potassium sulfate (SOP) and potentially generate up to $4B of value for AMZ shareholders. . .[and] the project has the potential to generate more than US$1B of free cash flow per year. . .assuming a 5 Mt./year project and a cash cost of US$20/ton, we arrive at an NAV of CAD$125.85 share. . .¡fántastico! We continue to rate the shares a TOP PICK with a 12-month target price of CAD$11.50 per share."

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