Sunkar Discussion Thread

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26th Oct '09 by cuckfield1704

3 comments 3668 reads

The Company principally operates in Kazakhstan.
It aims to be an integrated phosphate fertiliser manufacturer. The Company has a 100% interest in Temir-Service LLP ("Temir Service"), which holds the Subsoil Use Contract for the Chilisai phosphorite deposit in NW Kazakhstan.
The Chilisai deposit is one of the largest known phosphorite deposits in the Former Soviet Union with a resource of some 800 million tonnes of ore at 10% P2O5.
Listed on AIM in London on June 30, 2008 raising $66 million to accomplish implementation of early mining and preparation of a Bankable Feasibility Study

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About the Author

Cuckfield1704

Premium Member

3 comments

cuckfield1704

26th Oct '09

For any holders of SKR out there, I have written up my views to date after researching Sunkar - http://www.stockopedia.com/article/view/32753/sunkar-resources-any-capital-growth-from-this-fertilizer

As you can probably tell from the article, I am doubtful on it amounting to much. Not one for the widows and orphans portfolio, in fact one for the dreamers if you ask me. But feel free to tell me why if you think I am wrong about that!

2bozmo

15th May '10

Here are my notes from the AGM - got the impression things are going to happen soon but still need a bit of patience.

Not the most exciting AGM I’ve ever been but all the main players from Sunkar were there – all very chatty and friendly and filled you with confidence about the future success of the project. The main points were as follows:

SUC renegotiations should be done soon, everything been done on Sunkar’s side, looking for 1m tonnes/year from now until DAP plant completed in 2014; will be no issue in doing this as not in breach of current agreement, just a little painful having to deal with government agencies.

Looking for flour sales of 50k/annum from September – will cover the running costs. Construction of milling plant is ongoing – would have used local cement plants but housing industry on fire because of subsiding paid by government;

Don’t see fundamental reason for the sell off. Lehman and Teratorn were forced sellers and 3 other large PIs were forced sellers as well as needed the cash for other projects;

Future funding: favour debt over equity at this stage given the current share price. But even with s/p at these levels don’t foresee any problems raising money. They’ve had some international institution sniffing around (but couldn’t say more);

Director buying: will be more at some point. Seem to be constrained by close periods but 1m purchase by Nurdin tells it own story;

Chris Nesser (technical consultant) said he wouldn’t have taken this project on if he thought it had any chance of failing. The technical uncertainty was removed last year;

BFS consultants SNC-Lavalin are the best in the biz – will get provisional in Q3 but it’s going well;

They will update website a bit more often and try a release more progress updates. They could do things quicker but making sure they do it right and get the best people in. They also look at some of the bulletin board and got the impression a few monkeys were out to stir things up when all you have to do is read the admission document and look at website

I bought a few afterwards. All a bit rushed but hope this useful

Friendzarin

22nd Nov '10

Well tumbleweed may be blowing through this thread but it looks as though the project is continuing to make good progress .Updates since 2bozmo's post include:-

Subsoil Use Contract updated and ameliorated - 17 Jun, '10

.("MoU") with Eurasian Development Bank ("EDB"), financing Sunkar's Chilisai Phosphate Fertilizer Project in Kazakhstan -Sep '1010

("UniCredit Securities"), as its advisor in relation to the structuring and raising of
strategic equity finance - Sep '10

Agreement with UniCredit Bank AG for project finance advisory services - Oct '10

The shareprice is starting to look frothy at the moment with volumes picking up in anticipation of developments in the following areas:-

BFS( Bankable Feasibility Study) PIM(Preliminary Information Memorandum) (Q4 2010)

Flour plant commissioning

Flour plant sales

Full BFS (Q12011)

The shareprice has recently had a track record of reacting in advance of good news( which gives the impression it is a bit leaky) however the scale of this project for a company with a market cap of this size is quite staggering.Well worth a look as a LTH IMHO .

Link to Sept 2010 presentation on company website below

http://sunkarresources.com/userfiles/files/Sunkar%20Resources%20company%20presentation_Sep%202010.pdf

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Cuckfield1704

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