kas and ore

Hi all

As others have mentioned on this thread, I think that Orocobre (ORE) is a good proxy for KAS, for these reasons:

1. ORE is more advanced in the development phase than KAS.
2. Similar resource [lithum and tin ie non-bulk, industrial materials]
3. Similar geography [don't know if I'd rather be in Argentina or Morocco]
4. Similar funding arrangements [Japanese industrials who are consumers of the resource].

I have checked out the ORE chart and list of announcements/price catalysts and can draw out these observations:

1. ORE released its project DFS on 10/5/11 - almost to the day, the price went into a downtrend, hitting 0.975 [two year low] in the w/e 4 October 2011 - a 62.5% decline over 5 months.

2. Between October 11 and October 12, ORE reclaimed a high of around 2.38, reflecting resource validating drilling results and approvals - then two things happened:

a. Development agreement signed with TT on 17/10/12;
b. SPP allotment completed 30/11/12,

and the price slid back to 1.12 by April 2013.

3. From April 2013 to October 2013, ORE re-enters an uptrend and reached a peak of $2.39: what happens in this time? ORE executed the project on time and on budget.

Based on this, I see continued softness and volatility (between 0.9 - I think its found a floor here and 0.15 is my tip) until the funding arrangements are sorted out (including clarity on whether there will be a dilutive placement or a SPP - I think there will be).

However, I think that once the project development gets underway, and stays on track, the previous high of 0.40c is in reach, especially if the tin price comes to the party.

Views and comments are appreciated.