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Message: Globe says Prattas likes Allana Potash's latest move

Globe says Prattas likes Allana Potash's latest move

2014-09-09 09:14 ET - In the News

The Globe and Mail reports in its Tuesday, Sept. 9, edition that Allana Potash (31 Canadian cents) has hired a German company Ercosplan to complete a preliminary economic assessment on kainitite resources for sulphate of potash (SOP) production at its Danakhil project in Ethiopia. The Globe's Darcy Keith and Sonali Verma write that SOP is commonly used on chloride-sensitive crops such as tobacco, fruits, vegetables and vineyards. SOP typically commands a premium price to muriate of potash. The price differential between the two has averaged approximately $125-$150 (U.S.) per tonne over the past several years and has increased to over $350 (U.S.) per tonne recently. Allana Potash says the kainitite mineral resources at its Danakhil project are extensive. Cantor Fitzgerald analyst Peter Prattas says, "In our opinion, this is a prudent move requiring only modest investment toward proving the economic validity of this resource with the potential to create value for shareholders." Mr. Prattas has a "buy" rating and $1.15 (Canadian) price target on the company's shares. Mr. Prattas maintained his "buy" call on Allana in The Globe on Oct. 10, 2013. The shares were then worth 47 Canadian cents

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