[Interview] Magnesium market overview & investment case | Korab Resources Ltd (ASX:KOR)
Updated: Jul 12, 2022
Interview with Andrej Karpinski the founder & Executive chairman of Korab Resources Ltd (ASX:KOR). A scoping study was released for Korab's Winchester magnesium project this week including the following highlights:
KOR Market cap: 16M AUD
Annual Revenue estimated at 500M AUD
Gross profit margin estimated at 235M AUD
NPV of 1bn AUD
A second scoping study is in the works which investigates the economics of a new technology Korab has access to that would allow them to produce zero carbon - "green magnesium".
Magnesium alloys are used to reduce the weight of vehicles. This is important for ICE and EV vehicles.
Global market currently ~ 1M tonnes / year
90% of magnesium comes out of countries like China, Russia, Kazakhstan and Iran
95% of the magnesium used in Europe is imported from China
China produces 870K tonnes per year but will need 875t/year by 2025
No stockpiles in the world and limited secondary supply
Audio only version:
KOR Share structure:
360M shares on issue and no options
Insider ownership +50%
16.5% of shares held by Executive Chairman
The scoping study can be found here.
Feature article about Korab Group’s Winchester Magnesium Project published by Innovation News Network in their quarterly publication “Innovation Platform”.
Please find below some more graphs providing further detail regarding the project.
Timestamps:
00:00 Intro & background
02:10 Magnesium market dynamics
21:46 Winchester Magnesium project overview
46:55 Batchelor & Green Alligator project (Nickel, Scandium, Uranium)
57:00 Background on Ukraine gold project
59:08 Share structure
59:50 Upcoming catalysts
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Disclaimer: This blog post is purely my personal opinion and is not financial advice. Please do your own research, before taking investment decisions. I am long ASX:KOR. No payment or other incentives were received in exchange to produce the interview.