RCR - Resource Capital Research.Report by RCR on KRR puts an...

RCR - Resource Capital Research
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Report by RCR on KRR puts an accurate view on the position of KRR as an Investment
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Rated - Speculative Buy

12 Month Target - 11c

King River control a unique specialty metals project with goodpotential for robust economic metrics subject to confirmationthrough feasibility work underway.Along with high recovery of iron, titanium oxide and vanadiumproducts, a recent development and potential game-changer forrevenue is the production of High Purity Alumina (HPA).With at least 4 potential revenue streams, and a huge 4.7Btresource, the project could be one of the world’s largestsuppliers of specialty metals in future years, and attractstrategic partners.We have a Speculative Buy, with a 12-month target price of 11cents.

• INVESTMENT POINTS
• Very large, homogenous and flat lying, near-surface orebody (low stripratio).
• A Pre-Feasibility Study (PFS) is expected to be complete late ‘19, with theintended inclusion of multiple revenue streams from low temperature agitatedtank leaching of concentrate.
• HPA potential: Recent test work has shown that High Purity Alumina (HPA)can be produced from the leached solution. The HPA was 99.99% (4N HPA)which can sell for more than US$25,000/t.
• Well situated: The project is located in the East Kimberley region of WesternAustralia, close to the major town of Kununurra, Wyndham port and availableinfrastructure including highways, water, and electricity.
• Potential Tier 1 status: If the PFS indicates that the recovery of 4-5 metals isachievable, the project could attract strategic partners due to the long mine life,and the potential billion dollar plus annual revenue stream.
• Demand for these lightweight specialty metals is expected to be robustin an increasingly energy conscious environment, with growing demand fortitanium, aluminium (including HPA) and vanadium from many high growthindustries (energy storage, aviation, and ground transport).
• Low cost & well run: KRR has one of the lowest corporate overheads of ASXlisted mining juniors, with very low directors fees (A$84k cash aggregateFY’18) and remuneration, meaning more money spent on the project.

KRR_3Q19_RCR_Final.pdf