KOR - Korab Resources

[craigj]

great ann. this week permit to mine the rock phosphate in the NT

very easy mining to dig it out and bag it up

used as a cheap fertilizer

close to infrastructure

market cap 4 million

dual listed in berlin

also has a large gold deposit in ukraine

looks super cheap at these prices

 

[greggles]

Korab Resources has climbed 38.24% to 4.7c today after some good news regarding the pre-feasibility study to develop its Winchester magnetite deposit as a direct shipping ore (DSO) operation.

The bottom line is:

• 12 year quarry life
• 12.2 million tonnes of magnesium carbonate rock
• Project CapEx of $2.4 to $2.5 million
• Projected Free Cash Flow of approximately $434 million

The economics of the project seem pretty robust. If everything goes to plan and the various assumptions, such as exchange rates and market prices for magnetite, remain within reasonable ranges, Winchester looks like a very profitable operation for KOR.

 

[craigj]

Korab resources trading at a mc of only 4 million surely some news due soon in upcoming quarterly lots of projects no news lately

 

[Dona Ferentes]

Korab resources trading at a mc of only 4 million surely some news due soon in upcoming quarterly lots of projects no news lately

down on yesterday's Quarterly, but up 45% today ..... what do you know @craigj ?


Maybe someone read on: .... Korab Group has received an unsolicited approach from an Australian proprietary company which expressed an interest Winchester project. The other party advised Korab Group that their interest in the project stems from the high quality of the deposit and its potential to serve as a source of the raw material (magnesium carbonate) for the production of magnesium metal. The parties are currently discussing various potential transactions, including a potential sale of a part, or the whole of the Winchester project. The discussions with the other party are ongoing but are incomplete and confidential

 

[Dona Ferentes]

Korab Resources has climbed 38.24% to 4.7c today after some good news regarding the pre-feasibility study to develop its Winchester magnetite deposit as a direct shipping ore (DSO) operation. ....
The economics of the project seem pretty robust. If everything goes to plan and the various assumptions, such as exchange rates and market prices for magnetite, remain within reasonable ranges, Winchester looks like a very profitable operation for KOR.

The Group plans to develop the Winchester project as a quarry with the intention to produce raw magnesium carbonate rock which will then be crushed, screened, and sorted on-site prior to transfer to Darwin Port at East Arm, which is located approximately 90km by road from the project. The Company intends for a part of the output from the quarry to be sold as an un-processed magnesium carbonate and a part of the output to be sent for processing off-site into magnesium oxide in the form of high-grade and low-grade caustic calcined magnesia (CCM), and dead burned magnesia (DBM).

and to @greggles , let's see if alchemy can take things further up the value chain. ... had to check

Magnesite and dolomite are used to produce refractory bricks. MgCO3 is also used in flooring, fireproofing, fire extinguishing compositions, cosmetics, dusting powder, and toothpaste.

 

[Stockbailx]

The quite achiever, currently in the bull-market as it nudges forward with small gains on the back of some, good resource, seems to be in the right place. Financially not a real big player but is capitalizing well considering. May consider being on board, should things improve and the share price remain stable. Unsure how long the bulls will remain.

 

[craigj]

big day for korab on the back of world magnesium shortages

up 177% today

 

[Dona Ferentes]

Reply to ASX Query.

1. The Company is in discussions with magnesium metal users and magnesium buyers, including car makers (Fiat and Daimler), and aluminium/magnesium alloy producers regarding potential supply of magnesium metal from Korab Group’s Winchester magnesium project located near Darwin in the Northern Territory. No commercial terms have been agreed between the parties. These discussions are incomplete. There can be no certainty that any agreement or agreements can be reached or that any transaction will eventuate from these discussions. Accordingly, no investment decision should be made on the basis of this information. The Company is also internally assessing the use of two solar farms adjacent to the Winchester project (Batchelor 1, and Batchelor 2) that have a combined capacity of 22MW as the energy supplier to the project with the view to Winchester becoming a “zero-carbon” magnesium project. No discussions have been commenced with the owners and operators of the two solar farms pending the completion of the internal assessment.

2. The discussions mentioned above are at an early stage and are incomplete. Consequently any announcement of the details of these discussions would be premature and speculative.

3. As a further explanation to the recent trading in its securities, the Company points to:
a. Recent media articles and TV news stories regarding a threat of an imminent halt to global car production due to depletion of stockpiles of magnesium metal used as alloying element in production of aluminium alloys, which are then used extensively in car production. According to these articles, the shortage of magnesium metal is caused by severe cuts to magnesium production by China, which accounts for close to 90% of global magnesium metal production.
b. Magnesium metal price rising from approximately $2,000 per tonne in October 2020 to approximately $3,200 per tonne in September 2021, and $11,000 per tonne in October 2021.

 

[barney]

big day for korab on the back of world magnesium shortages

up 177% today

Hope you are still holding Craig

 

[Garpal Gumnut]

I missed this one but may jump on.

Only other thought I had was that if Mg has risen in price so much in price the Chinese may decide to export it again. They wouldn’t do that, would they?

gg

 

[Sean K]

Interesting timing for a CR at 5.5c. Why would they do that when it was 2c last week?

 

[Sean K]

This has been a wild ride over the past three months. Looks like a short term floor at 5c.

Ann out today, not sure what it really means.

 

[craigj]

A serious retracement back to 5c 50 % from its high of 10c

With a cap raising at 5.5c the current price at 5.2 looks a good entry price

The market cap is now under 20 million for a large deposit of magnesium

 

[Dona Ferentes]

.. if Mg has risen in price so much in price the Chinese may decide to export it again. They wouldn’t do that, would they?

Spot price for Mg in Yuan, 2021:

 

[craigj]

continue to hold and await some interest in the magnesium resource

awaiting the quarterly tomorrow some kind of news is overdue

 

[craigj]

Market cap is now under $7 million for a very large magnesium resource. Seems an easy buy for the bottom drawer

 

[Dona Ferentes]

5 year Mg price

and how is KOR tracking? quite well, it would seem> Not sure what led to last week's SP lift

 

[barney]

Market cap is now under $7 million for a very large magnesium resource. Seems an easy buy for the bottom drawer

I think the MC is around $4-5 mill now?? Chart indicates some attention.

They will need cash soon so the current bump higher could be a precursor to a cap raise. Could be a decent trade in it post CR though.