Why Kore Potash Jumped 69.36% Today

At the time of writing, shares of Kore Potash PLC [ASX:KP2] are up by 69.36%, to 10.5 cents per share.

Why did Kore Potash shares do this?

The company announced after market hours yesterday, the French Consortium of Engineering Companies (Technip France, Vinci Construction Grands Projets, Egis International and Louis Dreyfus Armateurs) delivered the final part of the Definitive Feasibility Study (DFS) to the company.

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What now for Kore Potash?

The market reacted favourably to the news, as you can see on the chart below:kore patash commsec graph

Source: CommSec

The share price chart has been in a downtrend since April. However, considering the poor resources market, Kore Potash has been a victim of the times. The company has commenced its review of the DFS study and will update shareholders when it’s completed.

The question on everyone’s mind: how much will the project cost to get into production and what’s the profit upside? If these numbers are positive, the share price should skyrocket.

The bottom line: Kore Potash has a market capitalisation of roughly $45 million at 10.5 cents, with $11.6 million in the bank. That’s an enterprise valuation (market cap less cash) of roughly $34 million. Put differently, if the DFS results highlight the potential hundreds of millions in profits with a low capital cost, the share price seems dirt cheap at these prices. There probably isn’t long until the market finds out the result either, mind you.

Regards,

Jason Stevenson,
Resources Analyst, Markets & Money

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Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:


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