STTCOMP KOR, FA LONG Korab Resources Diversified Miner Cap $10m...

STTCOMP KOR, FA LONG​

Korab Resources​

Diversified Miner​

Cap $10m​

Cash $128k​

SOI 299.3m​

Okay first up this stock while having an attractive array of mining assets (gold, phosphate (ok given where phosphate market is maybe not so much), and magnesium) this stock has been a perennial failure over the years to get deals looking so close over the line with past failed gold ipo's, gold sales at the door, phosphate offtakes, past sale of Winchester asset etc,. Some has not been the fault of the company though, for example, they have a very good gold project which I will call Bob in the Ukraine which was all set to have early gold ore sales for milling until Ukraine - Russia war which destroyed all rail infrastructure etc.

In fact based on the above been one of those stocks you could say it has well deserved its status as one of the real dogs of spec stocks. So what has changed to be brave enough to tip this finally (which to be frank taken bit of internal debate within myself to do).

Well the Winchester project for magnesium ore is probably more attractive than ever and if going to finally succeed on a project then this has to be the one. As latest updated feasibility study shows capex of $2.4 m (which includes 30% contingency) for NPV of $184m and chinese funding documentation we are told was only been held off for this feasibility study. The project is also only 85km from Darwin with port agreement in place for Darwin ports to ship the required tonnes projected. But the real game changer is new magnesium-ion battery developed which has 8-12 times capacity of lithium-ion batteries.

And probably the last reason why still play this stock is it has been one of the best spec stocks ever been involved in to manage dilution. Where Andreij the MD will do loans, sell assets (at profit), do capital raisings he will underwrite etc. Hence unlike other specs holders have not seen major dilution despite never earning revenue since its inception.

But whilst tipping this, given its past track record of failing at the last hurdle to execute, I still warrant caution with this one and if anyone going to play it consider appropriate position sizes, stop losses etc.