Val some answers for you:Price movement over last 2 years has...

Val some answers for you:

Price movement over last 2 years has been down because resource stocks have been in a bear market. Most stocks have moved in same pattern, compare a broad range: AGO, LYC, CPL, SLR, BRU all down 60% or so, and all different markets: iron ore, REE, coal, gold, oil/gas. The company or project does not matter in broad market sell downs.

The recent upward move in KFE is again related to the direct correlation with moves in stocks above and wider market. IMO this is because the bear market in resource stocks is now over as the sell off was overdone. Simple as that.

As I have stated previously the stock is very illiquid and moves are based on small trade amounts (daily churn is <$50k) so you cant make many assumptions about buying/selling activity on such small turnover. You can move the share price 5-10% with a 10-20k trade. In hind sight and as a side I would suggest that the run up past 30c last year was probably almost certainly related to IB on market purchases. What this does mean is that if anyone big starts buying up the price will move up fast.

Exploration spend has little to do with market cap, look at SIR how much have they spent and how much is their cap?? Market caps for exploration resource stocks are based on risked valuation of the potential mining activities. In any point in time the value of the stock is what the market has determined is the risked value of a potential mine. in this case risk is very high so valuation is very low (Met testing uncertainty and general bearish sentiment on iron ore markets just as a start).

CAPEX: Met testing results dependant. In short the process could be cheap as the idea is dig very shallow hole and shovel soft ore out. But it could be expensive if processing is difficult. So a range is pointless to calculate at this point as you could go from $200m (excavators and some trucks) to over $2b (complex processing plant, rail upgrades etc) depending on what you build (just ask GBG).

Met results: invest in a good crystal ball.

Short term price prediction: You correctly guessed the price would go down in this huge resource bear market, well done. I will however be impressed with your powers of prediction should you guess the price in 4 weeks time from now once the Met results are out. Feel confident?