Boskalis Is A Possible OMEX Partner In Oceanica
Nov. 18, 2014 10:43 AM ET | About: Odyssey Marine Exploration, Inc. (OMEX), Includes: KKWFF
Disclosure: The author is long OMEX. (More...)
Summary
•Royal Boskalis Westminster, NV, is a world class maritime operation.
•Boskalis recently bought 14.7% of a smaller maritime company, Fugro.
•Boskalis has extensive experience working with Mexican government.
The Odyssey Marine (NASDAQ:OMEX) subsidiary Oceanica has been awarded a large phosphate mining concession located 25 miles off the Pacific coast of Mexico, containing 327million indicated tonnes of 18% phosphate, and another 166 million inferred tonnes. Indicated means they are pretty sure the minerals are there, and inferred means it is probably there. The deposit is under about 250 feet of water, meaning it will be a serious dredging operation. The size of the deposit, dubbed "Don Diego", is such that the dredging could last decades.
OMEX is a relatively small company, currently without the resources to develop a project like Don Diego. This could change should one of their salvage operations prove very fruitful. For now, however, a partnership with a company capable of understanding the requirements and possessing the resources to develop Don Diego seems likely. Boskalis has been mentioned as a possible partner.
Royal Boskalis Westminster, NV, a Dutch company, seems to fit the bill. It expects a profit of $600 million this year, operates in numerous countries, and employs 11,000 people. It is one of six companies recently selected to dig a second Suez Canal. The stock trades intermittently in the US under symbol KKWFF on very light volume, and on the Amsterdam Exchange as symbol BOKA.AS