Just bought into this stock, anybody else a shareholder?

Chart looks interesting. What made you buy?

The 1.20 high was the ipo price then it dropped to 5p, i dont know why, but i smell manipulation by the hedge fund who bought in the ipo, the dubai royal family are backers, and it has a huge low cost phosphorus resource and is in production and is expected to have 6p eps by next year, although they are working on a feasability study to develop a fertiliser production plant as processed di- phosphate commands $1000 per ton at the moment. the shares rose 50% in 1 day yesterday, so it just shows how much this can take off when investors decide to get in, it probably was the highest gain of any share on the london market on the day. Phosphate is a good way to play the agriculture boom and the price has stayed steady just like gold in this bear market, because people still have to eat and they need phosphate, nitrogen and potash to grow the increasing demands for wheat corn and soya.

The hedge fund that bought in has been in trouble with the reulators before for shorting ipos after flotation dyor thats why i smell manipulation, plus the offering was a bit too high anyway, as a feasability study for the plant has not been done yet so the cost of building the plant isnt known but they say net present value is from 800m to 3billion, depending on the forecast future phosphate price which is volatile due to supply shortages now and again.

Good luck with it barclay.



The story sounds good - and chart has plenty of bullish indicators, but I just cant bring myself to go long on sucha a small cap in this market.

I guess what I'm saying is this looks like it could be a great buy - just so long as the market doesnt sell off - in which case it could be a disaster!

gausie you are correct, but the difference with this share is that it has already fallen and oversold the risks, it is selling below cash at bank now, keep a watch on it for next year when all costs and feasability will be known.

Could not find much news on this stock,but it was up 2 points to 11.5 (22%) on strong buying
Sounds interesting has anybody got any more info?

Not got any news but I joined the party today on a hunch that some of the hot traders are in this and I hope to ride it with them!! If it gets back to half it's float price it's a winner. read the thread on the other side.ad...

E.K. is long SKR. He has been known to be wrong, but gives hope to those holding. High risk, imo.

Up nicely so far today the word is getting out--trust Evil to be here first! The Dubai Royal family have a big stake here as well and they are already producing the phosphate I shall keep adding when the excitement dies down next week.

Has this got legs to go on up or is going to hang around?

well it floated at fair value 1.50 so I hope it could eventually at least get back there as it mines the biggest field in the world for potash and is looking to build it's own processing plant.

Bought these at 9p a couple of weeks ago(missed7p while researching),its the
following article which made up my mind.

The sheer brutality of a bear market is writ large in the performance of Sunkar Resources which raised 36 million in June prior to listing on AIM. The price paid then was 120p per share: now the shares cost 24p. And nothing has changed. The company still has a phosphorous rock deposit in Kazakhstan totalling 800 million tonnes capable of producing fertilisers for the next 56 years. The deposit lies in a flat lying position on the Kazakh steppes close to surface so will be cheap to mine and the world still needs fertilisers. Even so investors have decided in a matter of weeks that the company is not worth 191.8 million, but 40 million which is only a fraction more than the money actually raised. That is the measure of this bear market at the moment, but Donald Sinclair, the Scottish finance director, is determined to maintain the companys presence in the market until the turn comes and sensible valuations return.
In this case it was the first interim results that were being discussed, but there was not a lot of real news over such a short time. The terms of the Sub Soil Use clause have been amended so that the Kazakh subsidiary is in full compliance, but you would have to have read the original terms to understand the changes. Apart from that, most of the mining equipment has been moved onto the site and stripping and ore extraction operations have started.operations. There is more machinery still to come and the tantalising thing is that the company could be very close to cash flow.

The bottom line is that this rock can be concentrated very cheaply to17% phosphorous which could be trucked as crushed rock direct to users in the vicinity to boost alkali in the soil, or to a suitable plant in Russia or Uzbekistan for upgrade. There are two problems with this. The first is transport costs and the second the low price of around US$20/tonne that will be received. Nonetheless there could be a profit in direct transportation perhaps as much as US$10/tonne depending on the distance the rock has to be transported. With such a huge deposit it makes sense to generate an initial cash flow from this operation while still moving ahead with the core plan which is to install a phosphoric acid plant.

The first essential step of this processs involves treating the rock with acid to produce phosphoric acid. Fortunately for Sunkar there is plenty of sulphur available from the Tengiz oil field in western Kazakhstan where Chevron is involved in a joint venture with Tengizneftegas so sulphuric acid will be no problem. Each barrel of oil being produced contains about 16% hydrogen sulphide, which the company says is equivalent to just over 19 kgs of recovered sulphur. In addition the gas fields nearby have excess ammonia from the cleaning of sour gas so Sunkar will be one of the few integrated producers of phorphorous based fertiliser in the world as all three main components are within reach. As part of the ongoing process ammonia is added to the phophoric acid to produce either mono-ammonium phosphate or die-ammonium phosphate which are the actual fertilisers.

A large-scale, low cost phosphate fertiliser manufacturing operation producing up to 1.76 million tonnes of d-ammonium phosphate per year is expected to cost around US$740 million. But when one considers that the current price of DAP, the worlds most widely used ammo phos fertiliser, easily adapted to all ranges of dry fertiliser application methods, is worth nearly US$1,000/tonne, the return should be swift. Add to this the advantages of having such a huge deposit near surface and close to transport and it can be seen that Sunkar Resources has a huge asset with immense potential which is simply not being valued sensibly in these difficult times. Even if the shambles of the US banking system is infecting the rest of the world crops will have to be grown and crops need fertilisers. This is the sort of stock Buffett and Bolton buy at times like this.

The central part of the deposit alone covers an area of 836 sq kms which is about one-tenth the size of County Durham. The overburden is only about 3 metres in thickness so can be stripped by scrapes and bulldozers. The processing plant would be at the epicentre of a highly agricultural region west of the town of Kandagash which is a freight hub on the North-South road, the Moscow-Tashkent rail link and the Orsk-Atytrau rail link. Transport is no problem so Sunkar can start generating modest cash flow quite quickly while it develops a strategic mining and business plan and carries out a bankable feasibility study on the processing plant. It just makes so much sense even if investors have shut off their brains for the moment.

The case for buying Phosphate deposits is similar to oil. There is even a Peak Phosphate debate to rival Peak Oils.

http://www.energybulletin.net/node/33164

The case for phosphate deposits is population growth means more agriculture means more fertiliser. Just as with low cost oil companies, cheap phosphate producers will emerge from downturn in a strong position as higher cost companies close down/investment curtailed.

Sunkars deposit is low grade but it has three advantages.

1. Shallow - 1 to 3m depth. Ultra low cost to extract.

2. Close to Tengiz oil field which has high sulphur content, hence cheap source of sulphuric acid.

3. Located at junction of two main railway lines giving direct access to Russia/China.

Hence Sunkar anticipated to be one of the lowest cost producers in the World at sub $125 per DAP (die-ammonium phosphate) tonne. The average is circa $200 with some producers as high as $300. (See page 113 of AIM Admission Document)
cyril

got a mention in the guardian tonight.

certain posters reckon a 50p bid is on its way.. DYOR

gl.

The way the market is looking at the moment ,there could be a lot of milage left on this one.

I bought these a week or so ago an the fundamentals also on my fund in stockopedia. I expect 100p here over the next few months. Phosphate prices are rising and we should have cashflow coming through.

news of a JV with dubai royal family providing the finance would be the quickest way back to a 1.

this only fell due to the state of the world markets and nothing co. specific, no buyers and only sellers compounded the fall.

the reverse is now happening, hold on for the ride and don't be tempted to jump ship on the mm shakes.

SIPP is stuffed full of these now so in no hurry to let any go..

truly massive volume on friday, which is something of a two-edged sword

trading of over 3 million shares in first hour on Monday

http://www.bmocm.com/conferences/showAgenda.aspx?id=255
http://www.bmocm.com/conferences/showAgenda.aspx?id=255

cyril

Some sort of pullback has to be expected after a very strong run .-down 1.75 at 14.25 at the mo on volume of 4.5 million.a lot more buying still in evidence though.

sp looks set to power ahead next week.

anyone watching L2 on Friday would have seen the last of the sellers stock gradually being whittled away, at the close his sell orders had dried up.

From Tuesday the mm's will be more involved in the sp and if there is even moderate buying they will have to chase the stock by raising the bid AND the offer.

News may also come to rerate this to where it should be (nearer the mark)...

Interesting times.

SUNKAR RESOURCES PLC

PROGRESS AT THE CHILISAI PHOSPHATE PROJECT
"At the BMO Capital Markets Agriculture, Protein & Fertilizer Conference being held in New York today, Sunkar's CEO Serikjan Utegen will give an update on progress at the Company's wholly owned Chilisai phosphate project in North West Kazakhstan.

Progress Update Highlights

Phosphoric acid pilot plant production testing currently underway with three contractors in advance of appointing a Bankable Feasibility Study ('BFS') engineer;

Mining operations on the Chilisai field are being sustained at more than 100,000 tonnes per calendar month for the January to April period of the current year;

Project is on target to mine 1 million tonnes during 2009;

Beneficiation consistently producing a 17% P2O5 grade phosphate rock concentrate and beneficiation plant is expected to reach full capacity in 3rd quarter 2009;

Discussions are underway on toll milling of concentrates to enable early rock sales;

A JORC compliant resource estimate planned to be announced in 3rd quarter 2009: Wardell Armstrong International's study is underway;

Chris Neser has been appointed as Technical Advisor to the Company to provide advice on all technical and financial aspects of the Project; and

Cash position of US$27 million."

Sounds promising. Time for a price surge.Perhaps a few bid rumours might help the price along. 7 million shares traded,up 3 pts

With a presentation later today in uSA this will do no harm to sentiment.
cyril

still time to catch this shooting star....then on to MMS

These are my largest holding on stockopedia

Interesting trades todat, not having any of mine at these's prices.
SW whats the load down on MMS?
cyril
ps. CHL breaking out, news expected next week.

Interesting auction at SKR on Friday. our buyer is getting impatient now imho.

with lead and zinc rising MMS assets will now be viable, news due there anytime as well.

MMS-Please translate

A good move to the upside here.

nice uptrend starting to develop ahead of news.

share price up 1.25 today.
Looks to be based largely on director buying

and another 1.5 today to 15.75

lot of director buying going on

Well,they are certainly on a roll at the mo.,up now by 50% since low of 12 on 21 June.

but a real tiddler with cap of only 27m, which makes trading dangerous.
at least it's a SETS stock, so if you have L2, you should be able to trade quite well inside the published (wide) spread

something funny going on with SKR.
Considerable buying interest(over 2,000,000 buys and 500 K sells),but stock down by 1 (7%)

shaking for stock.

bought some more today, a few tranches as expect news is imminent.

3 lots of centres testing for phos acid, so a bit of competition to get it done.....

S W Looks like you made the right call on this one .

http://www.moneyam.com/InvestorsRoom/posts.php?tid=14368#lastread

sod off

I can't understand the price movement on SKR. There has been a good deal of buying interest of late, but price marked down significantly (5%)
Buys 217 k,sells 20k
Obviously,there are other factors here,but what are they?

A good report but still awaiting the lab assessment.
cyril

A loss of $7.2 m,but presumably better than expected judging by some buying

The reason of buying is the target of 1M tonnes will be achieved and cash still on good supply..............


Half Year results today, with target of 1M tonnes will be achieved, as 634,000 tonnes of ore mined was announced with results, Cash of US$ 26,157,000 on the bank

A closing comment by the chairman from todays results.


The medium term outlook for the phosphates sector remains positive as world prices have started to rise again with benchmark US Gulf DAP now above US$300 per tonne. The industry is confident that volumes will be restored as the autumn markets pick up. The underlying fundamentals of food demand and population growth in Asia remain unchanged, and the project is well positioned, with good infrastructure in place, to benefit from growing local and regional markets.




Teck Soon Kong, CHAIRMAN

15 September 2009

chess how much phosphate will be produced from 1 million tons of ore?

Based on the statement below,I reckon it should work out at 170,000 tons. At $300 . per ton,that should be worth $51 million



Our mobile beneficiation plant is consistently producing target 17% grade rock and has been augmented recently with the purchased of a Metso Lokotrack ST620 mobile screen. The beneficiation plant is expected to reach full capacity by the end of the 3rd quarter of this year.

Master RSI
you dont even know the companies name!!!!!

What are you talking about,sunshine?

razmun

re - Master RSI - you dont even know the companies name!!!!!

But I know you OK .......... look below

MoneyAM Username: razmun
Real name: bullsheet talk
Location: somewhere in the ether

Not much trades today, with some at Plus market

Things are picking up now, since and "AT" took the offer higher, and now the bid come alive aft 15.50p, not seen for some time apart from yesterday for a couple minutes.

spread 15.50 / 16p

once again strong order book on the bid side with 6 extra trades

it was bullsheet talk from you yesterday, wasnt it RSI!!!

Having HMB and CHL come up trumps this week,just need this to make a treble
in quick successtion.Analysts results should be on us in the not to distent future?
imho.
cyril

razmun

Are you from this world or somewhere else?

I never mention any company name on the post yesterday.

Maybe you could explain and then could drop this

re - Master RSI
you dont even know the companies name!!!!!

looks like we are on the verge of a breakout here.

C/Player it does look that way,could be news leaked of possible update?
For any newbie's or just refreshing ones mind, Page 1 Post 13 is a must read.
cyril

about time too........this should be 20p plus.....cash in hand was practically sp before until recent small rise.

update will be on sampling which i believe will be positive news.

think broker has 40 odd p as target price

Highs now being reached for year

18 - 18p EVO at offer

EVO gone after Auction, but 18p bid also, large spread at the moment

Level 2 very strong at bid side with 11 extra trades
at plus market they are paying 19p, thogh the offer is at 18.50p now

chessplayer

i think they reached 18.5p during summer but it might have been inter day high.....think it did get to 18p though at that period at end of day

if we get pas this sp, then serious breakout which is long overdue

chart looks pretty strong to me ......current live price is 17.5/18.0

On the up today with 2.5 m shares traded

"YES" easily broken through the 20p barrier,traders starting to take profits at 20.5p. Once the resource update is released(expected to be positive)then a serious re-rating will occur?
aimho
cyril

From another place at SKR thread earlier ......

Master RSI - 22 Sep'09 - 09:57 - 927 of 945 edit
Someone like this numbers on the Level 2 .....77,777 and 89,574

Those amounts are being entered at bid price 19.75p and eventualy taken as "AT"

77,777K is the latest entered at 19.75p, already 50K taken at 9.56am as "AT" 1 minute ago, as I was typping.
27.777K left now

If you want decent charts to look at and with Indicators ........

2 month candlestick with volume


2 days - 15 min

2 month

glad i toped up at 15.25p last week.......its been a long 5 months to endure but now got twice holding than before so well pleased.

this has much further to go imho

The shares went well over the Bollinger Bands upper Band, and now is retracing to close by,
Indicators had reached close to overbought positions aswell, after the sharp rise.

20.75p at finish.
I don't think a chart will be of any use if we get results out this week?
cyril

stuff the chart; this is based on fundamentals and sp much higher than even today

grab those oxygen masks guys, this one is going vertical.

the worlds' cheapest suppliers don't come along often you know.

According to a post by Barclay last November,the price for phosphates was about $1,000 per ton. Currently in the region of $300. per ton there must be considerable upside in the price.
Also worth noting is Kazakhstan (is that how you spell it) and Russia are both world top 10 grain producers and are of course on the doorstep.They will use plenty of phosphates.Then of course there is China!
I understand that this years target for phosphate production is 1 million tons.
Is anybone aware what future production is expected to be?

C/player the 1m/tommes is unprocessed and sold locally,i believe something in the region of $3/tonne profit? The reason why the analyst is taking place is to confirm its suitability for processing to fertlizer,which if as expected will add considerable value. It will then take time and quite a lot of money ro build a plant,the reason for doing so is transport costs.With raw phosphate at about 17%
and the difference in transporting the 2 and the prices is enormous.So makes sence to process at source and as a bonus the prices will be a lot higher than todays?
So a lot of patience and dilution will be needed,one for SIPPS(if your young enough?)and the bottom draw? imho
cyril

now at 22.5p

woohoo 23.75p now

Well this makes up for PXS!

this has large cash in hand plus fundamentals and good contacts make this a good medium hold.....broker has this for 43p i think

now 24.5p woohoo

and I'm out with a good profit.

dont u start dealer.....sounds like cynic

now at 26.25p, haha.....i'm amazed at novices yesterday selling, probably day traders that aint a clue about company

imho this will be higher in future and not on silly day to day moves.

hope everyone's loaded up, I'm expecting a bid from a major Potash co.

apparently master rsi bailed out IMMEDIATELY once it went up yesterday, lol.

he's in lloy etc hoping for 0.5p rise over a month, lol

You've always been an idiot marni and guess always will be. Master knows more about shares than you could ever understand. Like me he makes his money and gets out. I don't care whether this is 100p or bust next year, if it's a trading op again then I'll buy in make my money and get out. Simple as that.

Mind you, you do give me a laugh during the day to brighten the boredom.

Was about to post,but i'll come back when you've all finished bickering.
cyril

go on cyril.....i always value your posts......unfortunately dealer boy has turned childish. he seems to think theres a correlation between intellect and money; err, ask beckham etc poor lad that probably cant read or write

as i say, i made 700% on some shares this year already byt dealer can beat by sounds of it by dealing selling dealing selling over and over......jes i'm getting dizzy thinking of the whole stock market thats banging about his head......well something should be banging his head, lol

more like lost 700% and now working through the loans

lol

SKR my only blue in todays market,so something is out,us pi's will have to wait for offical news?
Each has ones own trading/investing stratagy,so i don't worry about others just concentrate on my own.My thoughts at present is whether to top slice, i'll wait for update and make my decision?
cyril

Think I'll hold on, even if it dips a bit, as I think there must be longer-term potential here

A profit is not a profit until you've taken it and don't forget that some people got burnt yesterday on pxs.

Has anybody any news re shares taking off?
Hope you have fastened seat belts

DD spot on,thats why i've consider top slicing.However their imo is enough in the latest interims to suggest that the analyst will be positive, which will give an added boost to the SP,then i will probalbly top slice.
cyril

dealer]

i aint in pxs so sod off u total moron......and i'm sure i made a huge more money than you this year on stock market

i take my profits when they are up 700%, lol

lol you ain't in anything that goes up only those that go down you wally.

go and stick ur head up a badgers arse you thick tw?t

this share goes up up so how can i be down on it....doh u r a cupid stunt

You guys are lowering the whole tone of the topic which is ,wait for it : Sunkar = Fertilizer = shit (which is what you two are wallowing in)

Because you don't own it wally.

'marni' oh yes of course ..

My Assets Remain a Negative Investment

i dont want to brag but i'm 8k up on it as i type

yeah right and pigs fly in your world

now 30.75p...... cant believe the muppets that sold a day or 2 ago.....think some sold at 20p or so after rise from around 15p

make that 32p now, lol

chessplayer, if you like those shares that are about to take off but don't want to hand around for the 6 months that usually preceeds take off, have a look at PPR, all the groundwork/ waiting has been done and it is just taxi-ing down the runway now.

gl.

is this ready to rise agaIN!

Yes - up nicely again this morning

wow up more than 33p.....even taken me by surprise as saw it at 31.5p when typed before........what level sp before it retraces?

That's the Q we'd all like to be able to answer! Could stop at around 36p? Or may motor on to 50p??

No stopping SKR, trades of 33/34p going through.marni well done on your investment,but always remember that a profit is only when you sell.Having stated that i'm holding tight for news, which can't be far away?
cyril

i know cyril.....thanks....but if i lost my nerve i could have sold at 20p....25p, even 29p or so but now its up to 33p.....as u say others are still buying

i bought this early in year but doubled holding last week.....what a stroke of luck!

i have just looked back at my comment here from just 3/4 days ago ..... shame i didn't think of actually buying instead of commenting that the chart looked strong with sp at 17.5/18p!

Ditto!!

Something must be afoot(and don't say a queer looking thing at the end of a leg) to account for what is going on!

like at PXS?

this is skr.........cash in hand........lawrence has finally stopped selling though which could explain things plus sampling results out soon

cynic

thats why i hold shares for more than a day!
day to day fluctuations sort themselves out eventually and although this appeared boring share this year i have got my just rewards.....hey its better than putting it into a bank anyway so i was content leaving it here as through time it was going to rise as NAV was much higher

There is certainly a lot to Buffetts' philosophy "don't buy for a day what you won't hold for years"

cant believe i'm a 5 figure sum up in a week

and what makes you think that i do not? ...... only your unresearched prejudice i dare say

unresearched? i aint seen u posting anything of note on this yet

as usual, you fail to answer the question as to why you think i only hold for a day or less
as for research, i leave it to the drones who enjoy that sort of stuff and then read or not as i choose

u buy by researching, doh.....check out balance sheets, management etc....as i expect u look for odd 20 quid profit.

templeman, buffett etc make hundreds of millions the way i mentioned and by holding long term

anyway i have feeling a sudden rise about to go again......what a week!!!

i buy or sell or short as i see fit, and with some success

you, of course, never ever buy a stinker (or answer questions), let alone admit to same, because you are so wonderfully brilliant .... indeed i wonder why you do not live in Monaco (Port Stanley as an alternative) with these huge profits you are consitently making

Excuse me, i'll come back later?
cyril

you make me sound like gordon brown.....esp not answering questions, lol

you're not that clever

didnt know he was.....in fact he is a thicko of the highest order.....of course he saved the world!

for those interested in this stock, cyril's post 13 is worth reading ....

Because it was believed last September that the world was going to end, most tiddlers were marked down to next to nothing in the usual SM exaggeration. There is an awful lot of catching-up to do as sp's in some of these travel north to a reasonable level. The trick as always is to spot the rise as it starts to happen.

Luckily with the help of Master I got in at around 18p although as usual I sold-out too early. Tends to be a fault of mine although I'd rather take the profit than see it disappear which has happened too frequently for my liking. These sharp rises over several days are becoming a norm for this market.

Tis spoting the next one that is sometimes difficult as there are a lot of false dawns that can trap you.

as i keep on saying, you can't pay the mortgage with a paper profit ...... hang on and you can also get drawn and quartered as with arseholes like me and PXS

similarly, there is no need to try to get in at the basement as there is always plenty of profit to be made once things get properly underway - still not exactly risk-free, but much better odds

i got in twice at basement levels on 2 shares this year; suffice to say they are many multiples now.

i have no mortgage to pay these days, plenty of spare cash and making a bundle on these, ahhhh

as i said, you are a true genius, with a surfeit of modesty and charm to boot, who never picks a dud and who should at least have a wonderful villa in south of france (or port stanley) .... or are you more of a Mother Theresa?

now now handbags away! I sold these for a small profit a while back--sorry I did now though a profit's a profit. The co. has some very wealthy backers so it probably has further to go but I think it's gone up too far to buy back now--will just watch from the sidelines I think.

sorry moneyplus.....spike took me by surprise too but constant buying even at higher prices.

Could be a very big day.Will this activity flush out an afternoon RNS, all results must be to hand now..if 2 were positive they should released that info. imho."

They may be releasing more than just the test results. There is a resource update and news on the BFS aswell. They might just wait for all news to be at hand before releasing

mp
i think that is a very sensible analysis. just be patient. good luck.
regards
jkd

I expect that this is the piece of news that accounts for much of the sp rally

RNS Number : 7379Z
Sunkar Resources PLC
28 September 2009









SUNKAR RESOURCES PLC

('Sunkar' or the 'Company')




Pilot Plant Tests Update




Sunkar Resources plc (AIM:SKR) is pleased to announce an update on its Pilot Plant Tests for the production of phosphoric acid from its 17% P2O5 Chilisai phosphate rock.




Highlights




Two independent Pilot Plant Tests by KEMWorks and Prayon Technologies SA have confirmed the ability that Chilisai rock is amenable to commercial conversion into phosphoric acid;

KEMWorks has confirmed that Di-Ammonium Phosphate ('DAP') of internationally accepted grade can be produced from the phosphoric acid made during Pilot Plant Tests after post-treatment of phosphoric acid;

Scale and cost parameters of the future phosphoric acid and DAP plants are estimated to be in line with that for plants processing commonly traded

sedimentary rocks of 32 - 34% P2O5.




Serikjan Utegen, CEO of Sunkar, commented:




'We are very delighted with the results of the independent pilot plant tests, carried out by acknowledged experts in this field. We never expected that our rock would produce ideal results, but we are thrilled with the reaction speed of our rock, the quality of the acid, and the confirmation of our ability to produce commercial grade DAP. The losses associated with the removal of impurities is not likely to materially detract from the Project's economics, and we are pleased to now be able to commence the next stage of the Chilisai Project development'




Background to the Pilot Plant Tests Program




To test a broader range of available phosphoric acid/phosphate fertiliser technologies and testing approaches, Sunkar contracted high profile phosphoric acid engineers. Each contractor conducted pilot plant tests of the conversion of Chilisai rock (17% P2O5) into phosphoric acid by means of sulphuric acid attack.




The contractors are:




Prayon Technologies SA, Engis, Belgium ('Prayon Technologies');

Jacobs Engineering Group Inc., Lakeland, Florida, USA ('Jacobs');

KEMWorks Technology Inc., Lakeland, Florida, USA, ('KEMWorks')




The results from the Jacobs Pilot Plant investigations are currently being finalised and will be announced shortly although management believe these will largely be in line with the results from the other two contractors. The results described below are those of KEMWorks and Prayon Technologies.




Company management found while discussing the feasibility study scope with potential contractors in 2008, that there were substantial differences of opinion among experts on the convertibility of Chilisai rock into phosphoric acid used for the production of widely traded fertilisers, such as DAP and Mono-Ammonium Phosphate ('MAP').




The experts' concerns were primarily related to




Chilisai rock had never been converted into phosphoric acid on an industrial scale, with the exception of a few trial conversions of blends of Chilisai rock with other Soviet rocks in the 1980s;

there is only one large scale phosphoric acid plant converting low grade phosphate rock into phosphoric acid in Jordan. This plant was originally commissioned to treat normal grade Jordanian rock and afterwards switched to low grade rock.

The Company has kept control over costs and contingencies of testing by issuing each contractor incremental scopes of work.




Behre Dolbear, USA, Inc., of Denver, Colorado, USA, the Company's competent person from 2006 to 2008 recommended semi-industrial testing of direct conversion of Chilisai rock (17% P2O5) into phosphoric acid after the completion of their initial bench-scale testing, as published in the Company's AIM Admission Document.




The Company has also appointed Mr. Chris Neser as a Technical Adviser. Mr. Neser was recently involved with operations management at the Jordan Phosphate Mines Company.




Phosphoric Acid Pilot Plant Tests




In March 2009, with the agreement of the above contractors and under the supervision of an independent inspector, the Company prepared representative samples of Chilisai ore. Numerous samples were taken from several locations within the mine operating area, and were processed on site to produce a sample concentrate. This sample tonnage was then blended, quartered and bagged to provide a 1 tonne sample for each of the contractors.




Initial rock characterisation by the contractors confirmed that the sample grade was consistent with on-going assays of dry concentrate produced from ore at the Chilisai mine on an industrial scale since January 2009, and was of 17-18% P2O5 grade.




The reactivity tests carried out by KEMWorks prior to running the Pilot Plant Tests. had shown that Chilisai rock is one of the most reactive phosphate rocks in the world and is clearly more reactive than most widely traded rocks.




The Pilot Plant Tests have been conducted by contractors at their own phosphoric acid pilot plants.




The typical industrial scale phosphoric acid plant consists of:




reactor, where phosphate rock is reacted with sulphuric acid;

filter, where the reactor's slurry output is filtered to separate phosphoric acid from calcium sulphate (gypsum);

clarification and concentration facility, where the acid is separated from the remaining hard substances; and

concentration of the phosphoric acid to a grade suitable to produce fertilisers (DAP, MAP or Triple Super Phosphate ('TSP')) or Merchant Grade Acid ('MGA') by the evaporation of water.




Further details of the above can be found in the Behre Dolbear competent person report in the Company's AIM Admission document.




For Pilot Plant Test purposes the contractors chose to use the di-hydrate process. The contractors performed several runs of their phosphoric acid pilot plants with variation of plant parameters and the following observations have been made by the contractors independently from each other:




the continuous pilot plant conversion process was stable and complete with P2O5 recovery rates of more than 96%;

the pilot plant's output (so called 'weak acid') was consistent and of expected grade - between 26% and 28% of P2O5;

all tests show that consumption of sulphuric acid was not higher than the industry norm- 3 tonnes of H2SO4 per unit of P2O5 processed;

a future Chilisai rock (17% P2O5) processing reactor will not be larger than a typical reactor for 32-34% rock with the same P2O5 equivalent output;

corrosion measurements were in line with industry norms, meaning that the phosphoric acid plant would use normal stainless steel parts;

filtration rates were found to be 50% lower than industry norm, which was expected since the lower grade ore would result in a thicker filter cake. This may result in the requirement for larger filtration units than the norm. However by using certain filter aid agents, KEMWorks achieved significantly higher filtration rates opening the path for further improvement;

the phosphoric acid produced was opaque and needed standard clarification;

after clarification the acid behaved normally while being concentrated up to 50% of P2O5;

weak acid had an expected relatively high minor elements ratio ('MER', sum of Fe2O3, Al2O3, and MgO content, divided by P2O5 content) of between 0.17 and 0.19.




Test Production of Fertilisers




The phosphoric acid produced during the Pilot Plant Tests has been used by the contractors to generate trial quantities of ammoniated phosphate fertilisers - DAP and MAP. DAP, in order to be globally commercially acceptable, DAP has to have N-P-K (Nitrogen (%) - Phosphate as P2O5 (%) - Potassium (%)) composition of 18-46-0, while having water soluble P2O5 at 90% of total P2O5. Typically the commercially accepted DAP production requires the MER of acid to be between 0.08 - 0.1. MAP has to be of composition of 10-52-0 or better with P2O5 water solubility of 43-47% (or 80-90% of total P2O5); the MAP specification is normally less onerous than DAP and subject to contractual conditions.




The direct MAP and DAP generation from clarified and concentrated acid produced the following results:




the phosphoric acid produced MAP with N-P-K composition of 11-52-0 (KEMWorks) with water solubility of P2O5 at 61.5% of total P2O5;

due to the phosphoric acid's higher MER, the DAP produced directly from acid was of N-P-K composition of 17-46-0 (nitrogen did not reach 18% level) with water soluble P2O5 at 80% of total P2O5 (Prayon Technologies)

The contractors have informed the Company that it is possible to manufacture commercially acceptable DAP once the MER has been brought to the required level. After having carried out phosphoric acid post-treatment test work aimed at MER reduction, the contractors have confirmed that certain well known techniques to precipitate impurities with the loss of some P2O5, can reduce the MER to that required to produce DAP of internationally accepted quality.




They reported that the loss of P2O5 may result in minor increases to operating costs. The contractors have reported that the by-product of the process to reduce the MER containing P2O5, could be potentially used to produce lower grade fertiliser.




KEMWorks confirmed that after impurities precipitation, internationally acceptable grade DAP has been produced with N-P-K at 18-46-0 with water soluble P2O5 at 90% of total P2O5, and impurities precipitation resulted in an indicated 17% loss of P2O5, however this loss amount is subject to further confirmation testing/optimisation.




Prayon Technologies, using a similar approach, indicated that the quality of treated acid was sufficient for internationally acceptable DAP production, with the P2O5 loss of approximately 13%, which is subject to further confirmation and/or optimisation.




Prayon Technologies and KEMWorks have confirmed their confidence to manufacture internationally acceptable grade DAP and have proposed further work to be conducted to reduce P2O5 loss during post-treatment of acid, using proprietary technologies, as well as a detailed costs implication assessment.




The technical feasibility of the production of international grade fertiliser has been achieved and is no longer on the critical path item of the Feasibility Study.

The technical information contained in this announcement has been reviewed and approved by Mr. Chris Neser, who is engaged by the Company as a technical adviser. Mr. Neser BSc (Eng.) MBL. has more than 32 years experience in all aspects of the phosphate industry and the types of processes reported in this announcement.










For further information please contact:

Sunkar Resources



Serikjan Utegen, CEO
Tel: +44 20 3178 5785

Donald Sinclair, CFO
Tel: +44 20 3178 5785






Canaccord Adams Limited



Mike Jones
Tel: +44 20 7050 6500

Bhavesh Patel








GMP Securities Europe LLP



Jeremy Wrathall
Tel: +44 20 7647 2800

James Cassley








Bankside Consultants



Simon Rothschild
Tel: +44 20 7367 8888

Louise Mason



















Editors Notes




Sunkar Resources plc




Sunkar Resources plc commenced mining following its IPO in June 2008. Sunkar's wholly owned subsidiary in Kazakhstan holds the Subsoil Use Contract to the Chilisai Phosphate Rock Deposit in NW Kazakhstan. The contract area is estimated to contain 800 Mt of phosphate ore.




Sunkar's strategy is to build a world class integrated ammoniated phosphate fertiliser plant with low operating costs. Sunkar's low cost base derives from its near surface phosphate rock deposit, access to cheap sulphur from the nearby Tengiz oil field and regional long-term marginal priced gas.




The Chilisai Phosphate Rock Deposit is ideally located on a transportation hub that spans the agricultural markets from Western Europe through to China.


This information is provided by RNS
The company news service from the London Stock Exchange

END

And indeed confirmed by another big price jump this a.m.

Excellent news along with CHL and AST,almost red letter day?
cyril

ps. taking the dog for a walk to help clear my head.

Nice idea Cyril .Unlike us,I don't expect the dog cares whether the shares go up or down! As long as he gets his food!

many shares are dogs, but like goldfish, don't need to be exercised

Cynic. I'm afraid that goldfish also have their drawbacks. My wife recently had me buy a filter for the front pond, so that she could see the fish better. Unfortunately,the gulls also have a better view. However,looking at it from the positive side, I don't have to feed quite so many now!

Well i'm back and slightly disappoined at the level of the retrace,but then on the plus side this has been considerably de-risked.Once the profit taking is out of the way,i believe a steady increase should occur?
cyril

sp behaving in the usual "sell on the news" manner,should pick up after the "hot" money has gone.

Disappointed!

Blimey cyril, this has gone up 100% in a couple of weeks. Nothing to be disappointed about. Almost bound to retrace from 40p.

it went up in 1 week actually from 15.25p to a high of 40p 1st thing today.......i sold half of mine for a hefty profit

smart move, even if sp suddenly surges to 1.00 (unlikely!)

it will take medium view if goes to a quid or above......it was 120p when started.

i'll be happy with 60p and above

DD; "Slightly" disappointed,expected some retrace (maybe 36p?),before recovering?
With more news on the horizon we should see 40p+ in the near future?
cyril

i've kept some money in case of a re-trace.....but will still be happy if it keeps on rising on my initial investment......plus i invested elsewhere on a solid ftse company with my profit that i took.

this share went up big 5 days running remember......and market doesnt like us getting too wealthy so quickly, lol

SKR : AIM : 0.34 | 56.0M | Buy, 1.10 ↑

Sunkar proves sceptics wrong -- BUY, raising target price 110p

Damien Hackett, 44.20.7050.6641


Event
Sunkar Resources' announcement today indicates that it has cleared its first major hurdle on the way to commercial production of
Di-ammonium phosphate (DAP) of internationally acceptable quality from its low-grade phosphate deposit at Chilisai in north-western Kazakhstan.

Impact
The ability to produce commercial ammonium phosphate from a low-grade primary source such as Chilisai at ~10% P2O5, even after local beneficiation to 17% P2O5, understandably presented some concern to investors. There is only one commercial plant in the world currently converting phosphate rock of grade less than 20% P2O5 into phosphoric acid and that is in Jordan. It now appears there might be another, this time in Kazakhstan.

Clearing this major hurdle enables us to reduce our project completion risk from 90% to 50%, which in turn lifts our net asset value for Sunkar to 1.14/share. On this basis, we are raising our target price from 0.25/share to 1.10/share.

Action
We continue to recommend buying Sunkar.

Next Catalyst
The company is due to appoint various contractors for the feasibility study before the year-end. We would suggest the start of the feasibility study is likely to be the next major stimulus to Sunkar's share price beyond our target of 1.10/share.

cyril

and who might damian hackett be that he knows the word of God?

Easy peasy,just google? to get Senior analyst, metals and mining for Canaccord.
cyril

at least it's not just some dozo off advfn or similar

Well,it certainly is a fair enough question!.

Rumour,a poster from another board who appears(?)genuine has stated that a bid is in the pipeline at many times thr present SP? This i state is a "RUMOUR" from a BB so should be treated as such. Having saud that it's a good investment imo,bearing in mind the quality of large holders who paid 120p at lauch?
Take care as i repeat it's just a rumour and could be pump and dump,only time will tell?
cyril

oh i do so hate these arseholes who post thus!
cyril - you know as well as we all do that such postings are 99.9% total and utter CRAP!

Off out now,but i'll just add that it has excited many and the SP is now pushing 40P?
cyril

i don't think "it" has at all, but more likely underlying fundamentals

How many years before SKR start producing?

SKR recommended as a buy at 32p in todays' SHARES mag

By Bryce Elder and Neil Hume

Published: September 30 2009 08:57


Sunkar Resources, the Kazakh fertiliser company, added 11.6 per cent to 38p as the rumour mill went into overdrive following the resignation of David Argyle, non-executive director. Mr Argyle is the chief executive of a Canadian potash company.

http://www.ft.com/cms/s/0/afe8a9f6-ad89-11de-bb8a-00144feabdc0.html

Halifax, 2011/12 if they get to that stage,it will take a lot of dilution to pay for the
plant costs.
cyril

One might be forgiven for rhinking that the resignation of an exec. was bad news.

not if he feels he has a conflict of interest

Be that as it may , the share is on the move again at 41.75,up 3.25 currently.If things carry on like this, it will soon beat autonomy as the best share I ever bought
And, there is heavy buying this a.m.

CP glad ro hear of your success,clearly the rumour has had a marked effect. What i also believe it has brought a much higher awareness,so coupled with a company that is well below its placibg of 120p and supported by some pretty impressive names PI's are happy to come on board.
At what point it faulers i've no idea,but falter it will and profit takers will close
their [psitions. We now need news to build on this latest surge in interest and should come shortly in the form of a reserve update?
aimho
cyril

As i wrote a spade of selling has started.
cyril

I believe that it is simply because the MM's are seriously short of stock so any news whatsoever pushes it higher.

you believe, lol.....

here's some real news........David Argyle is director of Agriculture of Forbes & Manhattan who are in a very acquisitive mode at the moment

i heard you aint a dealer but long term investor these days, dealer

I agree about the need for more news.
SKR will be attending an agricultural and fertilizer conference in Moscow on 6 Oct. Could be the time for any announcements,let's hope.

Well done those in here....this is one that got away for me....what a rocket !.

so was PXS!

look cynic stop posting about some company that i aint interested in.....if u lost on it then get over it

Touchy....

didn't even lose that much, but marni likes to think (or even hope) that i did .... i just didn't bank the profit and blew it, just as she is rapidly doing on RPT

btw, i actually have a small stake here

Tent peg..... I will wait for a retrace at some stage, good luck, you might make a

stupid boy, pike!
am half tempted to take the profit - 25% in a week - but other half has decided to stay put for the moment

I hope that you all understand what all these 3 letter abbreviations mean, for I sure as hell don't!!
All I know ,is that 6.5 points up ain't chickenfeed!

Spent a pleasent day out on the golf course,back to find the SP at an time
(since the crash)high and what do i find ? a load of "bitching". Dear deari????
cyril

whose bitching cyril.

ah this up 200% in 9 days.......at this rate i'll be a millionaire woohoo.

cynic, you only ut small amounts on anyway.
fwiw i think this has higher to go on small medium and potentially long term.....why potentially........cos i think someone wants to takeover as rumour someone said.
high volumes and as soon as sells appear they are gobbled up.
and recent guy leaving.....why.......hmmm.

if u r going to sell then i'm struggling to think what other great share is that i can fling money into.

anyway i'm on a free ride on this as i sold half but the other half tripled already, lol

SOLD 50% holdings @22
BOUGHT back 50% @25 after reading a few poster
SOLD half @ 32
BOUGHT @34 back again when read could go upto 110
now STAYING PUT till the price starts dropping .
so when and if the price drops please start a new thread Price drop !!i guess may set up an alert for the price so know when to sell and not miss out on further gains .

u did well buying in so quick after selling.

i've resisted buying again as last 2 days has went up quite a bit.....hope to see this north of 60p soon as a miniumum

tried again to buy them thursday at .4 and .41 p( unsucessful) win some lose some this way .i set uplimit orders so if it drops a few pence i pick them up noticed 10till noon and 4 to 5 i sometime get the share when it dips .drawback is ties tillend of day and do not know if yougot them .plus i cases of sharp drops the shares just lands in the lap at higher price .tomoorow friday will set limits up to buy at 43,44p lets see how they open.IF u say 60 p i am going to top up again tommorrow .

i have very happily banked a tidy profit, not least because i think we might see a further retrenchment of the markets in general and this sort of stock can get whacked in the blink of an eye

And as you always say, it ain't a profit till you've banked it!

i have dimwit but now wish i hadnt or else would have made massive money.

i cant see this going down much for reasons given........and what else is going up so much to put money on.....i've probably got money on it anyway, lol

cash is not a bad commodity in itself in uncertain times.
though this company may very well have good long potential, but it has gone up 2.25x in only a week or so, so arguably (dangerous to say certainly) far too far, far too fast - unless there is a predator lurking, though there is no indication to support that

not sure as this argyle chap leaving says something about to happen.
i might change my mind and say a quid soon.....by xmas.

long term if allowed, phew better not say but many multiples of today up to 5 quid

Down 6,but 3/4 of trades are buys,so it looks like the MMs are shaking the tree a bit,hoping for a panic reaction.

sold out got 38.5 .if it drops further will pick some up again .One that felloff the tree

yes i agree chessplayer

also the few sells are gobbled up.....did u notice 500,000 buys yesterday.....the big boys are after them and not many shares either.

for what it's worth L2 shows 1.5m being offered with only 300k being bid ..... i accept that is not necessarily an accurate picture as there may be plenty "hidden" behind

anyway, out at 43.75 does not look to have been such a dumb move

apparently not but i'm holding rest for long term......see where we are in years time and assess

i don't necessarily disagree long(er) term, though as with all these things, there is a massive amount of "unknown", either for better or for worse.

i guess there is good probability that in say 5 years time, this will be a rollicking good company, or have been taken over ..... on the other hand, perhaps it will all go horribly wrong.

value today is solely what the market dictates, and today it looks to be saying, "Too far, too fast"

broker has NAV at 114p now from 25p in past as project de-risked by a stonking 40%.......also lawrence selling was over which was holding sp back

marni
which broker has nav at 114? Is this recent valuation?

the one with a Whorely Divison!

ignore cynic as he aint a clue about the company......or most companies!

canaccord adams..............i'll post their note for you hjs......yes it came out this week after testing results.

Sunkar Resources (SKR : AIM): Sunkar proves sceptics wrong -- BUY, raising target price 110p



Sunkar Resources

SKR : AIM : 0.34 | 56.0M | Buy, 1.10 ↑

Sunkar proves sceptics wrong -- BUY, raising target price 110p

Damien Hackett, 44.20.7050.6641


Event
Sunkar Resources' announcement today indicates that it has cleared its first major hurdle on the way to commercial production of
Di-ammonium phosphate (DAP) of internationally acceptable quality from its low-grade phosphate deposit at Chilisai in north-western Kazakhstan.

Impact
The ability to produce commercial ammonium phosphate from a low-grade primary source such as Chilisai at ~10% P2O5, even after local beneficiation to 17% P2O5, understandably presented some concern to investors. There is only one commercial plant in the world currently converting phosphate rock of grade less than 20% P2O5 into phosphoric acid and that is in Jordan. It now appears there might be another, this time in Kazakhstan.

Clearing this major hurdle enables us to reduce our project completion risk from 90% to 50%, which in turn lifts our net asset value for Sunkar to 1.14/share. On this basis, we are raising our target price from 0.25/share to 1.10/share.

Action
We continue to recommend buying Sunkar.

Next Catalyst
The company is due to appoint various contractors for the feasibility study before the year-end. We would suggest the start of the feasibility study is likely to be the next major stimulus to Sunkar's share price beyond our target of 1.10/share. "

also in daily express today i think about trafalgar giving bullish presentation about skr

i think sp should have steadily gone up but lawrence kept on selling in recent times thus suppressing......when all this selling stopped then sp rocketed, thats the way i look at.....also cash is almost 10p in itself......it was a no brainer at under 20p esp with broker forecast at time of 25p.........now broker has 114p! and thats WITHOUT more good news

your arrogance and rudeness are truly beyond belief, and without even the redeeming feature of an iota of wit, though i suppose it takes all sorts ..... fortunately one can choose one's friends if not one's family ..... anyway, let's put it this way - i knew enough to bank a decent profit when the markets were looking less than healthy .... whether or not i buy back in at some point in the future, whether sp is lower or even higher, will be my own decision and will be without throwing abuse at others who have done their bollocks or managed to buy their villa in the south of france on the back of their fortunate hunch

what rudeness! u only put small amounts of money on......and i banked a hefty proper profit as i told u a week ago.

i was giving info on this company for hjs as he requested it.......but i doubt you care or even know the basic info.......oh it wasnt a hunch, read what i typed about cash in hand plus the seller involved etc.....oh forget it cynic u r a born loser as u miss so many shares rocketing, maybe thats why u go to work....i would say work but u dont as u sit and stare at screen on moneyam all day.

Thanks Marni.

you are welcome hjs

Marni
I had calculated my NBV's and Cash/share as follows:

2008 nav=69 cents apprx 43.4p cash=21.6cents 13.6p
Interim 2009 60 cents approx 47.5p cash 10.3p

I can accept that the NAV has shot up after the RNS but I find it very difficult to believe it would now be 114p. I only hope the analyst has not mixed up the cents from pence. IMHO, SKR is a buy just based on this.

I wonder how far it's going to fall......

i know i should check, but i also wonder just how much of this NAV etc is based on the supposition that a number of things materialise as hoped .... it should not be forgotten that SKR's ore is low grade etc etc

I think MM are waiting to fill a big Buy Order.This is my reasoning behind this:

The buy to sell ratio is 0.39 (sells exceed buys) MM tried to push the price down this morning for panic sellers but since this has not happened, they have marked it up now in the hope that some sellers may appear to fulfill the buy order. MM's are controlling the SP by widening or narrowing the margin spread.

We will see at close what happens to the volume.

ooooooooohhhhh no I got a right bollocking for suggesting MM's manipulate the sp........... be careful what you say HJS.......... RF is watching

Who is RF?

A very good question?

lol.....

Balerboy

RF?

RF = required field, a nice guy

A nice move upwards today,but quite a large bid/offer spread.

CP 43.5/44.5p with pi's paying top wack,almost all time high,thats according to the trades section above.
cyril

i told before that last week when at 45p that 500,000 buys going through......someone or many want these at even these low prices......this has much further to go

certainly well up today in a slow market

mm's tried bringing down price to force sellers but apart from the few weak people this never happened forcing mm's to bring sp swiftly up again as someone (or many others) keep buying.........i noted 1 million shares bought in 3 trades last friday alone and that was at 45p or thereabouts

so if these guys are buying at that price i'm pretty condident sp will be much higher by xmas.......this is medium hold at least.......buy lots and wait for the fortune

marni

See my post 209...
but see what Balerboy has to say on his posting 210. RF?

44.25p now,seems 45p has been its resistence,i think a breakout unlikely without news?
SKR did me proud in Sept's stockchallenge,alas finished 2nd almost a hatrick of wins.
cyril

hjs

i agree with ur comments.

i think sp went up lots though as lawrence stopped selling and with news coming up this caused sp to rocket......it might have went up lots but thats mm's own fault for suppressing sp for 5 months......if sp ticked up for months i'm sure a lot of the idiot traders who aint a clue about company or know where it is wouldnt be on this

As I mentioned in an earlier post, there is an agricultural conference taking place at the mo in Moscow.If there is news,it should be out soon.

Conference ends on 9th Oct so the earliest results of this would come out over the week end or Monday.

thanks guys

sp now moving up beyonds prev high......another breakout occurring perhaps!

Lets hope so?
Anyone in CHL, another excellent day.
cyril

maybe, but not much to go ..... prob good stock long term, but very difficult to judge what is reflecting value, and what is hype driven

its trying to break past this 45-47p barrier

Hi Cyril, I am still in CHL and am holding for future gains as I feel that it still has further to go. As I mentioned in my post to you on the CHL board I try to concentrate on the big picture (being somewhat new to the investing game I find the wealth of data in the micro view somewhat daunting and sometimes full of contradictions) and as such bought in to Sunkar some months ago purely on the gut feeling of the business and it's potential. Like CHL I feel that this one still has further to go to realize its full promise. Regards, Clive

Hello Clive,yes agree that both SKR and CHL have a long way to fo,failed to get much interest in the latter which is a shame as its has solid assets.
O/T a couple that are ready to go are RXP and XTR ,the former news maybe next week and XTR anytime this month,both worth checking out. Another i.m very keen on is URU for its discount to KAH.
regards
cyril

Seems this is being shorted,for how long and to how low i've no idea? With the 3rd test results not that far away, coupled with when a JORC will be issued,it appears to be near bargain basement? Something in the "who dares rodders" scenario,belief along with patience should see some handsome rewards?
aimho
cyril

The price is certainly heading from whence it came.
At the mo ,however,the entire market has turned negative.
May last for a couple of weeks

It shows how much market conditions have deteriated again. Dropped to bid/offer of 26/28p three days ago. Opened 3p higher on Wednesday but with a 3p spread 30/33p and then improved to 33p which means in the day it went up 25% and if you'd bought in at the start of the day you'd made nothing. Stagnated a bit yesterday and this am the MM put an early spread of 33/38p and now they are walking the bid up.

Unless you were prepared to take an enormous risk on Tuesday or Wednesday, this may have gone up 50% in a few days but the spread made it totally untradable.

now 36.25/38.5 but of course there's nothing to stop you placing an order at whatever level you like

Excuse my ignorance cynic as I STILL don't have level 2, surely if the spread is 30/33p then more than likely if you want to buy you're only going to get close to 33p. Yes if you believe in the company long term you may do it but to simply trade it with the risk/reward in your favour seems to me to be impossible.

your broker will place the order for you, but if you are an active trader, i strongly recommend you get L2 ..... at IG, my access to same costs me nothing

I've got a SB account at IG which I'm not really using atm until market conditions improve. Is the order likely to be filled though if for sake of argument you put it in at 31p?

price now 36.5/38.0, so if i was placing the order, having seen what's what, i guess i'ld try 36.75 and wait and watch ...... great thing about L2 is that you are totally in control and can change your bid up or down at will

Cheers cynic. I'll put L2 on my xmas list for myself.

suggest you also talk to IG how it works on SB side, as my experience is from CFDs

DD i thibk i read that IG provide free L2,on certain accounts, worth asking.In the meantime do you use the above facility,trades?
cyril

IG will waive fees subject to activity

Hi cyril

My understanding of the trades is that it estimates which are buys and which are sells based on the price taken. In other words, it is very misleading and after trading for five years I'm afraid I wouldn't take any notice of it. If the market makers are pushing the price of a tiddler up then through whatever means (delay?) buys can appear as sells and vica versa.

All I know for sure is I can now see when a stock is on the rise, I buy into that and mostly make money from it. The problem over the past three weeks is the market has become stuck again (to my knowledge only DES and SKR of the tiddlers have risen over the past few days) and hence for the moment the system has broken again. I use live streaming which in a decent market serves me well. As cynic has said more than once I should get L2!

i'm sure warren buffett doesnt have level 2!

oh, he doesnt have a computer, haha

SKR has gone very quiet any news/views?

I sold out sometime ago so not entirely sure but i believe aJORC and BFS are in the pipeline?

The SP seems a bargain at 29p,however it could go lower as the Lehman admins are selling along with one of their divisions Hanover
Nominees.So it's a question of wait and see,a couple of pence above bottom would still imo end up a worthwhile punt?
aimho, dyor
cyril

Resource update,
50m/tons from 40% of acrage with a mine life of 20yrs.
cyril

Seems to be a problem with news this am?

JORC MINERAL RESOURCE ESTIMATE FOR PART OF THE CHILISAI LICENCE AREA
Sunkar (AIM:SKR) is pleased to announce its mineral resource estimate, prepared
by Wardell Armstrong International Limited ("WAI"), covering some 40% of the
Company's 836 sq km Chilisai licence area ("Licence Area") in accordance with
the guidelines of the Australasian Code for Reporting of Exploration Results,
Mineral Reserves and Ore Reserves ("JORC").
HIGHLIGHTS
* The JORC resource estimate covers 40% of the Sunkar licence area. This is the
area closest to the proposed fertiliser plant site
* The area contains more than sufficient resource to meet the first 20 years of
planned ore extraction at a rate of 10 million tonnes per annum
* 293 million tonnes in the JORC Measured and Indicated categories with a grade
of 10.6% P2O5 at a 5% cut-off grade for a total of 31 million tonnes contained
P2O5
* Total resource including Inferred ore is 475.4 million tonnes with a grade of
10.6% for a total of 50 million tonnes contained P2O5
* Observations from trial pits and long trenches, which bound 400m x 400m mining
panels, confirm the phosphate rock in the Licence Area forms a layer that is
fairly uniform in terms of thickness and properties but varies in terms of its
structure (occurrence of top plate, nodule and pebble zones within the ore body)

Serik Utegen, Chief Executive Officer of Sunkar commented:
"At this stage, we have estimated a JORC resource covering some 40% of the
Chilisai 836 sq km licence area, sufficient to support Sunkar's economic
assessment of the project. This confirms the previous Soviet estimate and will
comfortably support a mine life of at least 20 years at our planned production
rate of 10 million tonnes per annum. Coupled with results of the recently
announced pilot plant test programmes, which support the ability of the ore to
produce international grade fertiliser successfully, this JORC resource estimate
is a significant milestone in the development of the Chilisai project. During
the course of 2010 and in tandem with the definitive feasibility study ("DFS"),
WAI will continue their review of the data for the remainder of the licence
area.
This news is further confirmation that the Company is achieving its development
programme outlined at the time of the Company's IPO in June 2008: trial mining
and beneficiation has successfully been producing 17% grade concentrate; pilot
phosphoric plant tests have proved the 17% concentrate can produce acid of a
quality to make ammoniated phosphate fertilizers and finally this resource
estimate demonstrates the project has sufficient ore to sustain annual
P2O5 output of 800,000 tonnes."
MINERAL RESOURCE ESTIMATE
The estimate below covers 40% of the Licence Area and is based on digitised data
for that part of the deposit only. Work continues to incorporate digitised data
for the remainder of the Licence Area with the intention of incorporating this
into the resource model.
cyril

Sometimes i wonder what PI's expect of companies,todays annoucement is saying it's just a matter of time. Such progress and yet no interest and still at a disgounted level due to a seller (believed to be Lehman's Administrator?)wwho will soon finish, so imho not to be missed.
A reminder of the potential,
The sheer brutality of a bear market is writ large in the performance of Sunkar Resources which raised 36 million in June prior to listing on AIM. The price paid then was 120p per share: now the shares cost 24p. And nothing has changed. The company still has a phosphorous rock deposit in Kazakhstan totalling 800 million tonnes capable of producing fertilisers for the next 56 years. The deposit lies in a flat lying position on the Kazakh steppes close to surface so will be cheap to mine and the world still needs fertilisers. Even so investors have decided in a matter of weeks that the company is not worth 191.8 million, but 40 million which is only a fraction more than the money actually raised. That is the measure of this bear market at the moment, but Donald Sinclair, the Scottish finance director, is determined to maintain the companys presence in the market until the turn comes and sensible valuations return.
In this case it was the first interim results that were being discussed, but there was not a lot of real news over such a short time. The terms of the Sub Soil Use clause have been amended so that the Kazakh subsidiary is in full compliance, but you would have to have read the original terms to understand the changes. Apart from that, most of the mining equipment has been moved onto the site and stripping and ore extraction operations have started.operations. There is more machinery still to come and the tantalising thing is that the company could be very close to cash flow.

The bottom line is that this rock can be concentrated very cheaply to17% phosphorous which could be trucked as crushed rock direct to users in the vicinity to boost alkali in the soil, or to a suitable plant in Russia or Uzbekistan for upgrade. There are two problems with this. The first is transport costs and the second the low price of around US$20/tonne that will be received. Nonetheless there could be a profit in direct transportation perhaps as much as US$10/tonne depending on the distance the rock has to be transported. With such a huge deposit it makes sense to generate an initial cash flow from this operation while still moving ahead with the core plan which is to install a phosphoric acid plant.

The first essential step of this processs involves treating the rock with acid to produce phosphoric acid. Fortunately for Sunkar there is plenty of sulphur available from the Tengiz oil field in western Kazakhstan where Chevron is involved in a joint venture with Tengizneftegas so sulphuric acid will be no problem. Each barrel of oil being produced contains about 16% hydrogen sulphide, which the company says is equivalent to just over 19 kgs of recovered sulphur. In addition the gas fields nearby have excess ammonia from the cleaning of sour gas so Sunkar will be one of the few integrated producers of phorphorous based fertiliser in the world as all three main components are within reach. As part of the ongoing process ammonia is added to the phophoric acid to produce either mono-ammonium phosphate or die-ammonium phosphate which are the actual fertilisers.

A large-scale, low cost phosphate fertiliser manufacturing operation producing up to 1.76 million tonnes of d-ammonium phosphate per year is expected to cost around US$740 million. But when one considers that the current price of DAP, the worlds most widely used ammo phos fertiliser, easily adapted to all ranges of dry fertiliser application methods, is worth nearly US$1,000/tonne, the return should be swift. Add to this the advantages of having such a huge deposit near surface and close to transport and it can be seen that Sunkar Resources has a huge asset with immense potential which is simply not being valued sensibly in these difficult times. Even if the shambles of the US banking system is infecting the rest of the world crops will have to be grown and crops need fertilisers. This is the sort of stock Buffett and Bolton buy at times like this.

The central part of the deposit alone covers an area of 836 sq kms which is about one-tenth the size of County Durham. The overburden is only about 3 metres in thickness so can be stripped by scrapes and bulldozers. The processing plant would be at the epicentre of a highly agricultural region west of the town of Kandagash which is a freight hub on the North-South road, the Moscow-Tashkent rail link and the Orsk-Atytrau rail link. Transport is no problem so Sunkar can start generating modest cash flow quite quickly while it develops a strategic mining and business plan and carries out a bankable feasibility study on the processing plant. It just makes so much sense even if investors have shut off their brains for the moment.

The case for buying Phosphate deposits is similar to oil. There is even a Peak Phosphate debate to rival Peak Oils.

http://www.energybulletin.net/node/33164

The case for phosphate deposits is population growth means more agriculture means more fertiliser. Just as with low cost oil companies, cheap phosphate

cyril

A large seller(believed to be Lehman's administrators and a susiduary) are making company this company seriously cheap imho? As to how low it may go is open to question but still a lot of stock aroubd,watching and waiting
for signs of the overhang to clear before making an investment decision.
cyril

Plenty of volume today and bouncing back, most likley - Lehman's - has managed to sell what was left of the stake clearance and the overhang being cleared.

SKR 26.50p +0.25p

Today's Candlestick was
WHITE CANDLESTICK
Type: Reversal/Continuation ...


Today's Candlestick was
WHITE SPINNING TOP
Type: Reversal/Continuation...

M RSI looks like your right,if the overhang has been cleared then hold onto your hat.MM's will have seen the excitement amoungst PI's,could make for an interesting opening?
cyril

From another board,
Sunkar Resources , the Kazakh phosphorite company, eased 1 per cent to 26p after a block of almost 7m shares was placed with institutions. Traders said the stock was sold by the administrators of Lehman Brothers.

http://www.ft.com/cms/s/0/629eac42-11f5-11df-b6e3-00144feab49a.html?nclick_check=1

Blue this am,which in this market is quite something.
cyril

This just about sums up what i've been saying.

www.investtech.com

Weak Positive Candidate -Medium term, Feb 1, 2010 Analysis Explanation
SUNKAR RESOURCES PLC has fallen back towards the floor of the rising trend channel. A continued rise may be expected and the current price level may be a good entry price. Has, however, received a negative signal from the moving average indicator, thus signaling a continued fall. The stock has marginally broken down through the support at pence 28.50. An established break predicts a further decline. Positive volume balance strengthens the stock in the short term. The stock is overall assessed as technically slightly positive for the medium long ter
Probably the best performer today?
cyril

Confirmed with News of all sold yesterday

Lehman Brothers
from holding 7,771,534 --- to 0

Continueing their recovery now the overhang has gone,32.75p top trade so far?
cyril

a better chart for you all

i only follow this stock rather idly, having made (i think) a few pennies on it several months ago ...... in what is a surprisingly good market this morning, this stock continues to misbehave (as does DES)

Sub 26p to buy,looks a bargain to me? My only problem is i've enough as a long term hold and don't want to commit anymore cash at this minute.
cyril

Sunkar Resources plc (AIM:SKR) is pleased to announce an update on its wholly owned Chilisai Phosphate Project in Kazakhstan.



Highlights

The Company's target extraction of 1 million tonnes per annum of ore was achieved in 2009 and the Company is in full compliance with its subsoil use contract;

Beneficiation operations have been in development with 180 thousand tonnes of ore having been processed by the end of 2009 producing 90 thousand tonnes of >17% P2O5 concentrate;

The Company has commenced building a milling and railroad loading complex and targets sales of direct application rock ("DAR") in Q3 2010;

The cash position at 31 December 2009 was US$18.5 million; and

Negotiation of the Bankable Feasibility Study ("BFS") consultancy agreement nearing completion.



Mining



Mining operations in 2009 were in line with the Company's plans. A total of 1,020,749 tonnes of ore was extracted, meeting all current obligations under its subsoil use contract.



Since commencing mining in September 2008, the Company has furthered its experience and knowledge of the main factors affecting the mining operation in NW Kazakhstan and confirms that year round mining is possible.





Beneficiation



The beneficiation process is a simple dry crush down of the run of mine ore to below 25 mm and screening out fines at 2mm. As planned this has consistently produced a 17% P2O5 content concentrate at a P2O5 recovery rate of approximately 79%. At 31 December 2009 a total of 180 thousand tonnes of ore had been processed resulting in 90 thousand tonnes of concentrate.





Milling and railroad loading facilities



Chilisai 17% P2O5 concentrate was used in Soviet agriculture before the historic operations ceased in the early 1990's. The Company has had the milled concentrate tested by a local institution, to certify that it complies with the Kazakhstan national standard for DAR (or 'flour') as a low grade fertilizer. In addition, the Company supplied some DAR to agricultural institutions for field testing on 2009-2010 crops and has also obtained expressions of interest to supply this material to Kazakh farmers.



In 2009, the Company sought to conserve cash by outsourcing grinding of the concentrate to cement plants mills; however the cement plants in the area have been kept busy by their core business, due to the continued Kazakh government sponsored construction program and were reluctant to switch their mills to other products. Accordingly, no outsourced milling arrangements for bulk quantities were available and therefore in late 2009 a decision was made to invest in the Company's own milling capacity in order to produce DAR in 2010.



Currently a milling and railroad loading complex is under construction which will be connected to the main rail line that crosses the deposit. The mills have a design capacity of 280 thousand tonnes of DAR per annum and the entire project will cost US$7 million (US$2.5 million was spent in 2009). This facility is intended to be operational by the end of Q2 2010, and the Company expects to start selling to local farmers in Q3 2010.



Bankable Feasibility Consultancy



The Company is currently in the final stages of negotiating a consultancy agreement for a Bankable Feasibility Study for ammoniated phosphate fertilizer production. A further announcement will be made once this is finalized.



Serikjan Utegen, CEO of Sunkar, commented:



"I am pleased to report that we are meeting our targets thanks to the commitment and hard work of our staff. We have made significant progress and gained valuable experience which will help us face the challenges of 2010.



We have laid the groundwork for two strands of our business strategy: firstly to develop a direct application rock business to fund and sustain our early mining commitments, and secondly to move forward with the Bankable Feasibility Study for our longer term plan to build an integrated ammoniated phosphate plant."

cyril

told you CHESS this was a dud

down from 51 to 21 . Of course, being in the Russian sector doesn't help.
Sirrius the other one in the sector that I was looking at is down a similar ratio from 20.5 to 9.6.
what are your views on the prospects for a rebound ?

chess i persomal thing they will go back to highs by xmas ?
i will ask a few questions from my info guy

Well, there is certainly one thing that has not changed.
That of course is the need to maximise world food production. Increased use of fertilizers seems to be the only answer.!

chess water is the problem the population is out of control
the red cross and oxfam are killing the planet

and people giving them money are to blame let nature take its course
1950 2.6b now nigh on 7b in 60 years .theworld is turning to a desert

chess he says they will start to rise very soon .so i am buying some

The chart suggests that the bottom has been reached. picking up today.
A speculative BUY in last issue of Shares..
Same is probably true for Sirrius. ( You cannot be serious!)

Nobody likes a bottom picker!

That's why I leave my arse alone!

Let's face it, the stock is down from 50 to 20. If that doesn't suggest a buying opportunity, what does .
Up 10% or so today.

Uncrossed off the highs - a close above 24 and I'm in.

If I knew what that meant, so would I be in!

Harry - it uncrossed @22.75 in the closing auction - high of the day was 23.5 (not withstanding plus trades).

HC
i didnt know that either, so thank you to s for the explanation. still not sure if i understand.
maybe i am too old for all this new stuff, maybe i need to re learn?
probably do.
i do understand,i think,that short term retracements ,or even DCB's usually occur with diminishing volume.hmm! seems not to apply here.where would a good stop loss be?
what is risk reward ratio if i am wrong?
now that i do know about.
regards to both of you and to all
jkd

jkd - depends on your definition of too old - I'm a child of the 50's - so certainly no spring chicken!

s
me neither. we seem to have 2 threads , dont know why.
anyway, this could well recover from here and if you do buy in i wish you every success.
its not one for me however.
good luck to you and to all.
regards
jkd

Drawdown on Equity Line Facility
and
Total Voting Rights



Sunkar Resources plc (AIM:SKR) announces that it has drawn down 600,000 of the Equity Line Facility with Dutchess Opportunity Cayman Fund, Ltd ("Dutchess") which was announced on 30 June 2010. The funds will be used for working capital purposes. The undrawn amount of the Equity Line Facility is 8,900,000.

A total of 3,157,895 ordinary shares of 0.1p in the Company (the "Ordinary Shares") at a price of 19p (as determined pursuant to the terms of the Equity Line Facility) have been allotted to Dutchess subject only to admission to trading on AIM, which is expected to occur on 13 June 2011.

Upon admission of the Ordinary Shares, the Company will have 164,859,074 ordinary shares in issue. The Company does not hold any shares in Treasury. The total voting rights in the Company upon admission of the Ordinary Shares will be 164,859,074.

CHESS . go t in at the right time i did . my info man is good

chess my post 269 was correct i am up 3k