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.
What now for Kore Potash?
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.
Resources Analyst, Markets & Money
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