This interview was my reason for buying KRM, along with having $26m in cash and a market cap of $33m, the BHP Xplore program is a dark horse, very valuable but cannot be priced by the market just yet but once drill works begin and news can start flowing that will change. Fabian does note that the BHP deal is covering $2m of KRM's team yearly costs with people working on those programs and allowing KRM to preserve cash.
Fabian is one of the best MDs I've come across in years for a stock at this end of the market; young but also experienced and a geo.
I imagine most here have watched this but it's very worth while re-watching.
For me the major play here going under the radar is the acquisition Fabian talks about in that interview, he gives a few specifics on it; noting they've honed down their search to just a few options now. That they're looking around the world for an advanced project, in particular an advanced Copper project. Something at a resource stage or even with an economic study.
He can't given a timeline but they have a few opportunities that they really like and are focusing on Grade ("Grade is King" - Fabian) where they want margin over scale for a potential project. The don't want a huge but low grade asset, that will be ridiculously expensive to build that as a small company they won't have the funds to take it all the way through.
Fabian wants to repeat what Adriatic (his previous company involved with) has done; high grade, high margin asset that went from exploration, studies etc. through to production.
A copper focused acquisition, high grade, doesn't need to be massive just needs to have enough that can be a viable mine one day.
Given BHP run one of the largest copper mines it does make one wonder with the Xplor program that there's some assistance from BHP being provided in this search.
Fabian notes how the current market climate where juniors have taken hits and companies are struggling to raise capital, it's the perfect time for a project acquisition where they will be paying under or fair value, compared to the over-priced projects in 2020-2022.
Fabian notes the acquisition could come any time now, that interview was July 4th so it's getting closer and closer.
Add to that the August appeals deadline to get over, which he talks about in that interview as well and they're not worried but it's part of the process.
I think though the big catalyst here is this acquisition, but it's a tightly held stock with not many shares on issue which makes it difficult for traders to really get into hence the lack of interest but I also imagine brokers haven't been able to get many shares either so they're not pumping like they do other stocks.
But it will move hard and fast on any decent acquisition as that will get the markets attention.
KRM Price at posting:
4.4¢ Sentiment: Buy Disclosure: Held
