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topsecret10 (< 20)

Where does Legend Int'l Holdings fit In ?

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March 22, 2011 – Comments (15) | RELATED TICKERS: LGDI.OB , POT , MOS

  I watched the updated video on their website that gives a "virtual tour" of their proposed phosphate mine for which they are trying to line up prospective partners. Cash burn Is becoming a concern for me now. Also the fact according to the virtual video on their website, that the Phosphate ROCK that Is mined will have to be "trucked" for 28 hours to the port of Townsend Austrailia.  Here Is a piece from CNBC today that put out a buy recommendation on the "only actual phosphate producer" In Austrailia,  Incitec Pivot, and kind of curiously to me does not even mention LEGEND at all.  TS   Investors Bet on Fertilizer Plays as Food, Oil Spike   Published: Tuesday, 22 Mar 2011 By: Lianting Tu 

Japan’s 9-magnitude earthquake put the breaks on runaway oil prices last week, but only just, as the Middle East turmoil pushed Brent crude beyond $115/bbl on Monday. Food prices continued their surge with corn prices up 86 percent from a year ago.But some portfolio managers have found a way to ride out this inflation trend. They are looking at fertilizer plays to hedge against higher oil and food costs. Prices of major fertilizers like phosphate, sulfur and ammonia have been rising since mid-2010, given higher grain prices, and so have the stocks of the companies that produce them.

One of them is Incitec Pivot, which is the only manufacturer of phosphate fertilizers in Australia. The company's main product is di-ammonium phosphate fertilizer, or DAP. It's used intensively to produce corn, which in turn is the main raw material for producing bio-fuels such as ethanol."[Incitec Pivot] is a double hedge because a lot of DAP production that comes out of the Arab world is disrupted and higher oil prices would push for more use of ethanol as a source of energy," said Sean Fenton, Portfolio Manager of Tribeca Investment Partners, a fund management company based in Australia   http://www.cnbc.com/id/42205090   http://www.incitecpivot.com/  http://www.lgdi.net/

15 Comments – Post Your Own

#1) On March 22, 2011 at 11:02 PM, goldminingXpert (99.73) wrote:

I am the scoreleader on Legend Int'l. My scoreleader box reads as follows: "This is a legendarily bad investment for shareholders!"

I'm goldminingXpert and I approve this message!

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#2) On March 22, 2011 at 11:25 PM, checklist34 (99.82) wrote:

I think legend is probably going to be a bust, one of those "pet stocks" from the commodity world that sort of kind of got popular in the time when commodities were shining brightest.

I don't know... but I bet there were thousands of these, hundreds at least, back in the dot com days.  

REFR was one that a couple of guys I knew back in the lat e90s were all hot on.  "its gonna be huge!  its gonna be on every car, everything, they partnered wiht GE!  XXXXX investor guru is in it!"

Gun to my head a whole bunch of penny stock "junior miners" in this industry and that will, from 10 years hindsight, also be viewed as "what were people thinking?"

Commodities today are tech 12 years ago, 14 years ago, 15 years ago, 11 years ago... I don't know, but some years ago when tech was really, really, really hot.  

With that will come not 1, not 10, but literally dozens if not hundreds of stocks that will see/have seen a peak to which they won't return for a decade, if not decades, if ever.  

Commodities is the "it" trade right now, the one trade nobody will make fun of you for being in, the hot seat, the VIP booth at the club.   

It can get hotter, but eventually it'll cool off too.  And gun to my head, buying and holding commodity stocks from today to 10 years from now won't make poeple extremely happy and proud...  It'll be closer to buying and holding tech from 1998.  Extreme happiness and pride for a while, so you go on a 10 year drunk and come back to check how much your $2 million portfolio is up to and...  

rent a penthouse suite in vegas just to jump off the balcony.

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#3) On March 22, 2011 at 11:26 PM, checklist34 (99.82) wrote:

how did you ever get any points on legend, GMX?  lol

I am long legend in real life to the tune of 0.1% of my portfolio, on a rec from a caps player that I have a good opinion of.  

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#4) On March 22, 2011 at 11:31 PM, topsecret10 (< 20) wrote:

13 months ago....    Shenzhen China – February 21, 2010- Wengfu’s CEO, Mr. Wang Jiangping, signs a Technical Services Agreement (TSA) with Mr. Joseph Gutnik, the CEO of Legend International holdings Inc. This TSA signed on behalf of both companies is for the exploration (feasibility studies and due diligence) of phosphate resource located in Queensland Australia. 

Legend International Holdings Inc. is based in Melbourne Australia and Mr. Gutnik, the CEO, is a leading mining industry entrepreneur in Australia who discovered the largest and one of the most astounding mineral resources of Australia. Legend owns rich phosphate resources in the Georgina Basin, Queensland, Australia including Paradise, D-Tree, Thorntonia, Lily Creek, Quita Creek, Sherrin Creek and Highland Plains. The total reserve is about 1 billion tones with an average grade of 16% P2O5.

The signing of the Technical Services Agreement (TSA) has added another milestone to Wengfu’s continuous development and advancement at the international scene. It reflects the promotion of Wengfu’s technical innovation and the capability to plan and manage world-class phosphate and chemical projects. After this stage, Wengfu and Legend will move a step further in their partnership to execute the various production processes including the production of fertilizers and fine chemicals for their mutual benefits.

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#5) On March 22, 2011 at 11:59 PM, goldminingXpert (99.73) wrote:

Checklist -- repeatedly red thumbed it from the $4 level on down. LGDI has provided more than 150 points for me actually. Good good CAPS stock.

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#6) On March 23, 2011 at 12:04 AM, checklist34 (99.82) wrote:

I didn't realize it had ever been that high... 

I may just dump my stake tomorrow.  I frequently forget that I own it. 

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#7) On March 23, 2011 at 1:01 AM, awallejr (84.46) wrote:

I played this stock awhile ago, made money on it but closed my stake when I started having my doubts about the CEO.  It still could have potential since their product is real, I just don't think the CEO is.

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#8) On March 23, 2011 at 12:45 PM, topsecret10 (< 20) wrote:

One correction of note...  the products from the mining operation will be shipped by "RAIL", which means buliding out the railroad Infrastructure needed to accomplish this. With approximatly 40 million In cash on their books,the only way to fund all of this would be by a direct sale to another company,or giving another company a substantial Interest In the companies assets In order to be "partnered In the deal.   TS

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#9) On March 24, 2011 at 11:59 AM, topsecret10 (< 20) wrote:

North the world fertiliser saviour 

THE destiny of northern Australia, with its seemingly endless supplies of water, is sometimes seen as the food bowl of the world.

However, less well known, and probably with less disagreement, is its potential to be the fertiliser saviour of the world.

The vast Georgina Basin in north-western Queensland and the Northern Territory, which in the distant past was an inland sea, hosts hundreds of thousands of square kilometres of phosphate-rich rock formed from the sediments of ocean beds laid down tens of millions of years ago.

North-west Queensland already hosts Australia's only ammonium phosphate fertiliser manufacturing plant at Phosphate Hill 150km south of Mount Isa. It is a $1 billion operation employing 350 people, many of them living in Townsville.

There are a host of players looking to duplicate what the former Western Mining Corporation has done make big money out of phosphate rock and Townsville, 1000km away, looks set to play a big role.

"It's a very significant resource," Townsville geologist and James Cook University emeritus professor Bob Henderson said.

"As a total resource, it's got to rate (among the largest in the world).

"The downside of it is, it's distant from the coast."

The Phosphate Hill resource was only "discovered" in 1966.

Indeed exploration for the material in Australia was not permitted before the 1960s to protect British interests in the trade.

Western Mining, after initial rock exports and plans for complementary sulphuric acid plant and gas pipeline were secured, opened the Phosphate Hill fertiliser plant in 2000.

BHP Billiton, which took over Western Mining, sold off the plant for a song in 2005 just $165 million.

With the price of ammonium phosphate, vital for modern agriculture, now well over $600 a tonne and climbing, annual profits from the operation which produces about one million tonnes a year have been in the tens and hundreds of millions of dollars.

Also, with scientists warning that the world is approaching "peak phosphate" and that global reserves could be depleted in as little as 50 years, it is little wonder others are looking to duplicate Phosphate Hill.

Mining entrepreneur Joe Gutnick is one. His Legend International Holdings has tenements north of Mount Isa and is planning an $800 million project, involving a sulphuric acid plant, phosphoric acid plant, ammonium phosphate plant and aluminum fluoride plant.

Financial adviser Nomura has been appointed to assess interest for partners   http://www.townsvillebulletin.com.au/article/2011/03/19/216471_business.html       

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#10) On March 24, 2011 at 2:09 PM, awallejr (84.46) wrote:

Professor Henderson said he had little doubt the resources would be developed and that the benefits for the North would be huge.

However, he believed development would occur in the next decade rather than the next year or so.

And there's the rub.  You really need a longterm horizon and I just have my doubts about the CEO being able to get it done.

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#11) On April 04, 2011 at 9:24 PM, BJames40 (< 20) wrote:

Why is LGDI down 10.8% on the day?  Haven't been able to find any news.

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#12) On April 05, 2011 at 4:01 PM, mhy729 (29.53) wrote:

Whatever that drop was it seems to have recovered.  I too have been unable to find any news.

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#13) On April 10, 2011 at 7:07 PM, topsecret10 (< 20) wrote:

BJames40   There seems to be a handful of people that have begun to focus on Legends cash position,which was published on March 16th In their 10k filing.The stock dropped on relatively low volume,and has since recovered a smidge on their recent update to shareholders. With these proven resources In the ground and confirmed by Wengfu,I am not really alarmed at this point. There have been ZERO Insider sales. :)   TS

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#14) On April 10, 2011 at 7:37 PM, hregtyjty (< 20) wrote:

ONLINE STORE:

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TRUE RELIGION ,ETC

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#15) On December 13, 2011 at 8:57 AM, mhy729 (29.53) wrote:

http://www.miningaustralia.com.au/news/legend-phosphate-plant-approval-up-in-the-air

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