The below article was recently published in South Africa about KP2.
I particularly like this part of the article:
"Kore Potash’s financial projections show that annual free cash flow could exceed its current market cap once steady-state production is achieved, but it’s not advisable to value pre-production plays on this metric, given execution risks and the uncertain direction of future potash prices (there have been periods of oversupply). A more reasonable approach would be to compare the company with similar pre-production opportunities. In this regard, the proposed US listing of Brazil Potash is instructive. Of similar size as Kore Potash, the Canada-domiciled company is looking to raise equity capital that would give it a market capitalisation of at least R10bn. This compares with Kore Potash’s current market cap of about R2.4bn."
The whole article should be read for context (link below), but the general point made in the above text is that KP2 has some significant upside potential.
Link to full article as provided on HC:https://hotcopper.com.au/posts/75906379/single
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