When North Americans wake up to the dangers of relying on China and Russia for essential metals like zinc, rare earths, antimony, niobium and scandium, the juniors now suffering with anemic stock prices could turn into cash producing machines worth writing home to mom about.
China and India have high-priority national mandates to get a piece of the potash action in what is now being dubbed as Saskatchewan’s Pink Gold Rush. Both emerging superpowers are anxious to lock-in long-term supplies by partnering-up with smaller players.
There's a global macro theme - "Feeding the World" - and certainly longevity to the potash story. Miners are looking to enter the business, or expand existing operations, as they look for demand from developing nations such as China, India and Brazil.
With potash prices spiking higher in response to surging global foods costs, the world's most advanced "independent" potash project is in the cross-hairs of an increasing number of deep-pocketed suitors.
Western Potash Corp.has received an independent positive prefeasibility study from AMEC Americas Ltd. on its 100%-owned Milestone property in Southern Saskatchewan for possibly more than 40 years at a production rate of 2.8Mt/yr.
Despite the risks and unfavorable public opinion associated with offshore drilling, the truth remains that the keys to unlock the planet's vast remaining oil resources lie beneath ocean floors, in places like the Gulf of Mexico, Brazil and the Arctic.
Junior resource companies offer the greatest leverage to increased demand and rising prices for commodities. There is also a very real and increasing trend for mergers and acquisitions in this one of the few bright spots available for investors.