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Karnalyte Resources Inc T.KRN

Alternate Symbol(s):  KRLTF

Karnalyte Resources Inc. is a Canada-based development stage company. The Company is engaged in the exploration and development of its property and possible construction of a production facility and development of a potash mine. It is focused on two fertilizer products, potash and nitrogen, to be produced and manufactured in Saskatchewan. The Company owns the construction ready Wynyard Potash Project, with planned phase I production of 625,000 tonnes per year (TPY) of high-grade granular potash, and two subsequent phases of 750,000 TPY each, taking total production up to 2.125 million TPY. The Company is also exploring the development of the Proteos Nitrogen Project, which is a proposed small scale nitrogen fertilizer plant with a nameplate production capacity of approximately 700 metric tonnes per day (MTPD) of ammonia and approximately 1,200 MTPD of urea, and a target customer market of independent fertilizer wholesalers in Central Saskatchewan.


TSX:KRN - Post by User

Bullboard Posts
Comment by IXL1969on Jul 15, 2016 1:45pm
198 Views
Post# 25056656

RE:RE:Is the market price assumption too high?

RE:RE:Is the market price assumption too high? NPV is an educated guess of what the value is today, based on future in incomes discount back to the present. It makes many assumptions, discount rate, and future cost and future revenue which is based on future price over life of mine. It was done by independant third party. Can't used today price, need to make assumotion on average price over the next 70 years. Might look high today, might not look high enough in 10 years.

Seems high to me, where will the price be in 2 years, and will the price in 2 years be at point that they turn profits, hope we get more clear picture over next month, but Robin seems to think he can turn a profit at these levels.

Mines with extremely high cost like Mossaic colonsay will shut down, as they have done when price drops below their cost.
Bullboard Posts