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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

Comment by patospoweron Jan 06, 2022 11:59am
228 Views
Post# 34289333

RE:RE:RE:Who is buying?

RE:RE:RE:Who is buying?Hi Dan, prety sure the share price can be explained by Occam's Razor. Potash prices are up and getting into the limelight, so the naive noobs are playing hot potato with the stock. You saw an influx of this type on here already.

The arguments they bring out are true; KRN's enterprise value is vastly outweighed by the value of the natural resource it sits on. However, this is nothing more than a value trap if the resource doesn't get extracted.

KRN had all the time in the world to get ready for the current environment, and instead chose to twiddle their  thumbs. The only man calling for action got ousted from his own company. Not once, but twice.

As prices were rising, KRN was selling all its tangible assets. This is another telling hint among many that KRN, or rather GSFC, simply has no intention to develop Wynyard within any reasonable timeframe.

If the price of potash had been the only impediment as they claimed, they would have already been acting urgently a long time ago. Instead, they're just getting ready to hire someone to make cold calls to prospective investors in a $1b project for them, while they can't even maintain their website up to date. That's not exactly a promising spot to be in right now. Imagine where the stock price would be if shovels had hit the dirt ~4 years ago.

I stay by my opinion that GSFC is simply too broke to handle this project. They likely can't even fulfill their end of the agreement (the off-take) so they're playing pretend until the price of potash blows over and they can go back to power tripping aimlessly on the board of a ghost company.

I'm just jeering from the stands but that is the impression I get from digesting all the publicly available information.

There's only one way for KRN and GSFC to prove me wrong and I would welcome that with open arms. I'm certainly not holding my breath, past experience with the players involved does not exactly entice excitement. Nevertheless, the price of potash is no longer an impediment to get the project off the ground. So if the shovels don't hit the dirt within 6 months (being generous here), we will know for certain that GSFC are clowns taking us for a ride. There's no other way to cut it.
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