Pricing for Falcon Isle Resources organic phosphate rock will be based on competitive pricing from the three other sources of organic phosphate in the United States along with adjustments in pricing for variations in total P205 levels and available P205 levels.
Organic phosphate price is mainly influenced by the increasing demand for organic phosphate fertilizer. Within the demand influence, the price that a producer can obtain for organic phosphate rock at any given time is also dependent on the percentage of available P205 contained in the material. Available P205 content is the measurement for the level of quality of phosphorus that can be absorbed by the plant, also known as plant uptake.. There is no substitute for phosphate, therefore its price elasticity demand is very low.