I have been interested in KRB for a couple of years now after meeting the MD at a conference and being impressed with his forthright approach and prospecting background (he was still wearing his dirty boots and looked decidedly uncomfortable in a tie). My biggest concern of late has been the amount of focus on the Yttrium as opposed to what has always been an attractive phosphate deposit. Ideally I would like the company to come out with some timelines showing what they are aiming to do over the next two years. Eg what are the expectations and timelines following grant of the phosphate mining lease? Negatives: The Squirrel Hills/Garnet site looks like a dud at this stage, unless they suspect a serious lode at depth in the sulphide mineralisation. The company is tiny junior with all the issues that come with that. Cashflow, ability to raise money, ability to get attention when they finally get a real resource.
Positives: The management still own 15% as far as I can tell, nothing like some skin in the game. The phosphate resource is shallow and close to direct shipping quality. In addition a good amount is top quality (above the magic 30%). Being shallow and with close by infrastructure we should see a low C1 for the phosphate. Prices for rock P also likely to increase into 2012/13. IF the Yttrium comes off it would be a massive coup, but is also likely need a sizable investment. If there is value to be found anywhere in the 30 tenements, this team, given time and $ should find it.
KRB Price at posting:
18.8¢ Sentiment: LT Buy Disclosure: Not Held
