RE: KRN OPEX too expensive.... Ok.
This is the reason you are going to get caught with your pants down on this one.
Israely chemicals is a highly profitable company that mines carnalyte. It also has an extremely profitable non potash chemical byproduct division, just like KRN will have(Magnesium).
Karnalyte has the ability to produce high quality Hydromagnesite that has strong demand from within industry.
You are way off the mark when you talk about costs. WPX does not even have a feasibillity study in hand. they are guessing at this point as to what costs will be, and what is worse, when you compare Krn's cost inputs to wpx's guesses, you can see that Robin has been extremely conservative in his estimations.
Ask yourself this, if you were a foreign entity wishing to purchase a position in a canadian junior, which management team would you choose? The one that had plenty of experience mining diamonds, because not one of wpx' s board or management(the last time i looked at their website) had any experience mining any form of potash, or any experience with solution mining.
Would you really invest with them 1 Billion- 2 Billion dollars? Guys that have no experience AT ALL mining potash. They may be decent genuine guys and great geoligists, but they are not experts in the potash industry.
Compare that to KRN's team -Robin Phinney (CEO, 18% shareholder) spent 15years at PotashCorp in various senior engineering positions.
Siu Ma (VP Engineering and R&D) from PotashCorp, spent more than 20 years in potash and potassium chemical engineering and design.
Ron Olchowski (Surface Operations Manager) was at PotashCorp for over 8 years, and has managed anddesigned several chemical plants.
Mike Robinson (Underground Operations Manager) from Encana has significant experience in geology and directional drilling in the Prairie Evaporite, where KRN’s depositresides.
Robert Macgillivray (VP Sales) has over 30 years of experience in agricultural sales and marketing.
These guys have ACTUAL EXPERIENCE RUNNING AND DESIGNING potash mines/plants, do your own research on this, all true. And they have hired engineers and cleared the site for the mine and plant. All ready to go.
Wpx and all the other Juniors are years behind KRN from a permiting and abillity to start building. Wpx has not even finished their Feasibillity study and is probably a year away from getting their EIS approved (admitedly KRN has not recieved their Enviourmental approval, but it is probably weeks if not a month or so away).
Which ones would you trust with your money? Why not find an association of jewlers and ask them to mine potash for you?
On the subjecy of money, would you like to invest all of your money at once? Would you like to put up a billion and a half dollars? Or would you prefer to invest a way smaller amount and reduce your risk substantialy by investing $100 million for example.
Wpx requires close to 3 Billion Upfront! even at 50% debt to equity that is sill huge.
How much Dilution would a 1.5 billion investment effect current shareholders.
Krn needs less than $600 million to get to production and can offer entry to 1 or 2 strategic partners for between 50-100 million each, with 50% coming from debt. Do the math, the rest of the scale up to full production can be generated from profit from the 600,000 plant.
Well done on being smart enough to short these junior potash companies(and i mean that sincerely) because i wish i did, but we are getting close to the end game here and i would not like to be on the end of that short covering.
Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=31736856&l=0&r=0&s=KRN&t=LIST#GdxFxpmZLW1Tumpz.99