All falling into place If you go back and look at past releases, KRN has told us they would have their feasibility study completed by the end of the year, and within a week or so, completed on time. They said they would secure a strategic partner and that is completed. Said they had a market for magnesium and as planned had the pre feasibility completed. And the 30 day open forum period is about to come to a conclusion.
All sounds so smooth and two big missteps: (i) BMO pulled their financing when the securities commission came back with last minute requests, and KRN were unable to comply, and (ii) the organized and systematic shorting of the stock; this was organized, planned and it put the stock down to where the buyer was able to get it at a 30 day avg price of $6 and change and a 25% premium. Now that the deal is consummated, the shorts are slowly sliding away. This stock has little liquidity and it got pushed down the same way it got pushed up. Let's assume the buyer was the shorter; doesn't quite seem kosher but not illegal.
Alright, feasibility and strategic partner found; those dominos have fallen. And more dominos will fall once Robin Phinney addresses any objections after the 30 day period. The "ifs" are gone. Expect to see the banks to announce their debt financing and expect another partner to be announced who will build the plant. By next quarter, they want the building of the plant to begn. The next quarter will be one of action.
Manulife has been a large instiutional investor in this for some time. Expect others to fall into place. It is hard to believe that excluding the Indian investment, the company has only 21 million shares.
Clarus has a good report which someone posted on the Bullboard citing a $20 target. Once you read the report, there isn't much to argue with.
As we have seen in 2012, everything always takes longer but they have kept true to their promise and I just don't see the downside moving forward.