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[Interview] Magnesium market overview & investment case | Korab Resources Ltd (ASX:KOR)

Updated: Jul 12

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.

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