Some Thoughts On Karnalyte Resources Inc

Some Thoughts On Karnalyte Resources Inc

Karnalyte Resources Inc

This is a cigar butt with upcoming catalyst

Trying to develope a potash mine in Canada

Has plenty of resource, a world leading mine, low cost too

Company is working to achieve financing for the mine, 20% owner, Indian fertilizer company has a $700m loan waiting; company is in discussions
The money is nearly there, just waiting for go ahead

Should have the cash after EGM — in March I believe

There’s an activist too, he’s the largest shareholder pushing for change.

At the end of Sept had CAD$42.9m in cash…CAD$3.3m cash burn per half….lets say CAD$39m, tangiable assets CAD 60m — these numbers are lower than the estiamtes should be…..anyway

with $39m cash, current liabilites $410,000, net nets….well lets say $38m CAD, or….with 27.5m shares in issue….CAD$1.38 net nets, in USD $1.11,

With $60m tangiable assets, ($59m equity) per share tangiable asset value $2.15….USD $1.73

So…based on the US listing ($0.699), the stock is trading at a 37% discount to cash (conservative est. and 59.6% discount to NAV…

Special Value and opportunity ranking with a 12 month time frame.

[No position]

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