Karnalyte Resources: proves raw materials are invaluable
Karnalyte Resources: proves raw materials are invaluable
Seanergy is not the only group seeing a bottom in commodity prices or looking to lock up raw materials for future consumption. Karnalyte Resources is a TSX-listed potash developer based in Saskatchewan that you had probably never heard of... until last week. Below is the 5-day chart, beginning on Monday last week.
What could create such a rapid increase in value? Gujarat State Fertilizers & Chemicals Limited, an Indian manufacturer of fertilizers and industrial chemicals, agreed to, in principle, "finance construction of the first phase of Karnalyte's 625,000 tonnes per year (tpy) potash mine at Wynyard, Saskatchewan ("Phase 1")." This equates to approximately $700 million in financing (full press release here). Up until Monday, Karnalyte was like so many TSX and TSX-Venture resource stocks: relatively quiet for many months. Since the news on Monday, its market cap has increased from about $24 million at the close of trading on March 11th to over $100 million the following week. Again, China and India have to secure raw materials and fertilizer to guarantee healthy crop yields for their emerging middle classes. Karnalyte is another company benefiting from this narrative.https://www.pinnacledigest.com/articles/whats-behind-tsx-venture-bull