This Polish firm has sales of $102m for 9 months ending sept 2018. Them buying up to 20k of dbm is significant as the transaction will be up to $24m or $28m, depending on the type of DBM. Anyone who is disappointed by this deal needs to realize that a company that has $102m in 9 months of sales is not going to be buying hundreds of thousands tonnes of DBM. Korab claims in its september 2018 presentation that it can make a gross profit of $110m to $130m producing 150k tonnes DBM97 and $180m to $200m producing 150k tonnes DBM98. This gross profit has costs of quarrying the rock, crushing, sorting, handling, haulage, shipping, and processing deducted. 20k of DBM could yield an ebitda between $14.66m and $26.66m. Big deal for a sub $10m MC company. More deals will follow with other companies; management wouldnt have delayed putting out a NOI to mine with higher production capacity if they did not have a clear idea of how much consumers would be willing to buy. Time is crucial in this phase of the market and management knows it. P.s. This is all my opinion. If anyone thinks I am a ramper then please shoot holes through my analysis.
KOR Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
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