KRLTF current price (05/02/14) is $1.10 per
share, you get per share values of cash 1.53, book value 3.67, EV -.421
Karnalyte
Resources focuses on exploration, development of agricultural and industrial
potash as well as magnesium products. Furthermore, Karnalyte intends to develop
and extract a carnallite - sylvite mineral deposit. Significant magnesium
received a positive pre-feasibility study for the production of magnesium
compounds. The construction of a magnesium product facility is contingent upon
the development of the 625,000 tonnes per year. Study indicated viability of
producing magnesium products as a second product line.
Noted advantages taken from Karnalyte Resources website are as follows: “strong potash industry fundamentals; a
significant potash resource with existing infrastructure; low capital
expenditures and operating costs; near-term production of 625,000 tonnes per
year, with plans to expand to 2.125 million tonnes per year; and an opportunity
for expansion of both production and resource base.”
A
strategic investment and agreement with Gujarat State Fertilizers &
Chemicals ("GSFC") received environmental permits to start
construction of the Wynyard Carnallite Project. The Company’s near-term
objectives get additional financing to fund the first phase construction along
with identifying other strategic partnership opportunities.
Gujarat StateFertilizers & Chemicals(GSFC india) was willing to take a 19.8% stake in the company paying 44.7M or 8.15 per share in a private placement. That was January 2013.
KRLTF
52-Week Change: -83.65%
Market Cap:30.45M
Enterprise Value (May 5, 2014): -11.59M
"Karnalyte met key
strategic milestones in 2013 by entering into a strategic partnership and off
take agreement and receiving Environmental Impact Study approval for the
Wynyard Carnallite Project from the Saskatchewan Ministry of Environment,"
said Robin Phinney, President and CEO of Karnalyte Resources Inc. "Despite
these important accomplishments, the global potash market remains challenged.
Karnalyte intends to manage costs and explore other product lines while
advancing discussions with potential strategic partners and pursuing new
strategic partners in this unique market environment."
“The Corporation has
identified other potentially economical product lines and is determining how to
pursue these potential product lines to enhance shareholder value. The Corporation
continues to investigate the possibility of magnesium production from its
property, including product development, independent testing of product and
discussions with key industry players.”
“As at December 31,
2013, the Corporation had net working capital of $47.0 million compared to
$21.4 million at December 31, 2012, including $46.1 million and $25.1 million,
respectively, in cash. Karnalyte's 2013 Year End Financial Statements and
Management's Discussion and Analysis (MD&A) are available at www.sedar.com.”
