Darry Morley updated his weekly share trading recommendation and portfolio on last Wednesday 24/3/2010. KOR is one of the shares that he bought for his portfolio. The portfolio started with $50,000 in July 2006 and it has grown to $267,421 (cash @217,191 and share $51,230)
First target 46c Second target around 70c. Bought at 36c (16 March 2010) Stop loss 29.5c
For further details on the article, refer to the link below
http://www.thedaytrader.com.au/24_March.html
His background:
He started writing a Weekly Trading Column Day Trader for the Herald Sun Melbourne and Hobart Mercury trading in shares using Technical Analysis and occasionally using Options as risk management tools. The returns on the traded portfolio have been in excess of 30 percent per annum compound.
*********************************************************** Fundamental Analysis (FA) ***********************************************************
Target Price :A$ 0.60
Investment recommendation:
Based on a current market valuation of just A$ 26.7 million and having created substantial added value to shareholders through the spin-off of Uranium Australia and to be followed by the spin-off of the Brobikovo Gold Project and the Melrose Gold Project,
In our view, the shares of Korab are strongly undervalued.
Korab Resources Ltd Four Main Projects
Geolsec Organic Fertiliser Project 2010 of 15,000 tonnes of environmentally friendly organic phosphate rock fertilised for a pre-tax profit of A$ 5.5 million, subject to receiving all permits and approvals. There is a potential for the Project to operate for at least 5 years at a rate of 30,000 tonnes per annum and a targeted gross profit of A$ 26-27 million over 3 years.
Bobrikovo Gold project The Bobrikovo Gold Project held through Korabs fully-owned subsidiary Lugansk Gold in the Ukraine, has a maiden JORC Code compliant resource of 960,000 ounces of gold. The Deposit is ready for mining to recommence in March 2010 and to commence production of gold and silver in the second quarter of 2011. Initial production is estimated at 60,000 ounces of gold per year. Korabs share of the profit (at US$1000/oz) will be approximately US$ 16-19 million (AU$ 17-21 million) depending on recovery rates of gold to concentrate.
MELROSE GOLD PROJECT JORC code compliant resource of 326,170 ounces on granted mining leases Primary ore global average grade 4 g/t gold Production scheduled for 2011 1 at AU$550-AU$585/oz projected operating costs Targeted profits of $24 million, or 30 cent per share NB: The resource figure include recent upgrade of Bungarra deposit. Boundary, Stirling and Hurley deposits will be upgraded in the near future.
Winchester Magnesium Project It has a JORC Code compliant resource of 16.6 million tones of 91%-pure magnesite. The Project has been progressed to feasibility study stage. Test mining and processing has shown the Project can be developed as a supplier of 50,000 tonnes per annum of magnesium metal at an operating cost of US$ 0.85 per pound. It has been valued by Salomon Smith Barney at A$ 372 million (NPV at magnesium price of US$ 1.20 per pound).
