Floated at 120p on June 08 raising 33.6m to fund the development of a fertiliser factory, has used $5.9m for adquisitions September 08 and said it still had $26.9m left at 30 June 09.

The company 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.
Positive points
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.

Sunkar is suppose 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.
The case for phosphate deposits is population growth means more agriculture means more fertiliser needed in the future.
RESUME SKR produce phosphate for DAP fertilizer and have licenses and acrage in Kurdistan to last 50-70yrs producing in excess of 100M tonnes of raw material each year. 160m shares in issue, directors own a significant chunk. Also they have a cheap source of sulphur required to produce the DAP

Phosphorus - its role and nature
Phosphorus (chemical symbol P) is an element necessary for life. Because phosphorus is highly reactive, it does not naturally occur
as a free element, but is instead bound up in phosphates. Phosphates typically occur in inorganic rocks.
As farmers and gardeners know, phosphorus is one of the three major nutrients required for plant growth: nitrogen (N), phosphorus (P) and potassium (K).
Fertilizers are labelled for the amount of N-P-K they contain.
Most phosphorus is obtained from mining phosphate rock. Crude phosphate is now used in organic farming, whereas chemically treated forms such
as superphosphate, triple superphosphate, or ammonium phosphates are used in non-organic farming.
The current major use of phosphate is in fertilizers. Growing crops remove it and other nutrients from the soil... Most of the world's farms do not have or
do not receive adequate amounts of phosphate. Feeding the world's increasing population will accelerate the rate of depletion of phosphate reserves.
and...
resources are limited, and phosphate is being dissipated. Future generations ultimately will face problems in obtaining enough to exist.
It is sobering to note that phosphorus is often a limiting nutrient in natural ecosystems. That is, the supply of available phosphorus limits the
size of the population possible in those ecosystems.

13 May 09 conference - fertilizers link about SKR ....minesite

Intraday
3 month Candlestick with volume

3 month Bollinger Bands,RSI, S Stochastic and 50 days MA

Charts - 2 days

Plus market trades Number of people who have visited this thread    

Just the news to help the sp to continue in an upward trajectory.

http://uk-analyst.com/shop/page-article.show/id-130008011



Buy Sunkar Resources (SKR) at 28p

Says James Faulkner of specialist small caps site WatsHot.com

Sunkar (SKR) was first tipped on WatsHot.com earlier this month at 23p. Since then, its share price has risen by over 21% in just 4 weeks! But small cap wizard James Faulkner, who edits WatsHot.com, believes there is still further to go.

Every month on WatsHot.com, James provides two brand new tips like this on small cap stocks where he sees fantastic potential. To get all these new tips (including a brand new one published yesterday) plus a daily column from James with the latest small cap news and rumours, join WatsHot.com now.

And here's why James believes Sunkar is still a "buy":

When BHP Billiton launched its bid for PotashCorp I flagged Sirius Exploration as a possible beneficiary of that action, it being the only UK-quoted potash company. Since then the shares have soared by almost 200%. And I know at least a couple of you have made a pretty penny on that play. BHP's move is a sure sign that the demand for food and, more importantly from an investor's point of view, the factors of food production are going to rise dramatically in the future. Investors looking to benefit from this trend should take a look at Sunkar Resources which owns the Chilisai deposit, one of the largest known phosphorite deposits in the Former Soviet Union with a resource of some 800 million tonnes of ore (10% grade). DAP (diammonium phosphate) is one of the key ingredients in fertilizers, and world prices began to rise recently. Upcoming initial results from a bankable feasibility study should help stir interest in the shares. Speculative buy.

NPK

It is becoming clear that having a mineral that is needed to increase yields and help feed the world's burgeoning population is potentially just as - if not more - strategically valuable than owning copper or iron, as our sister site Minesite observes:

"There is evidence that rock phosphate is becoming a strategic material for many countries, as pressure mounts to increase agricultural production to meet the needs of growing populations. Rock phosphate is a key ingredient in many fertilisers... [and] the price of fertilisers is building up again after having boiled over in 2008. Nitrogen, phosphorus and potassium are the three ingredients that promote plant growth and, of these, the future supply of phosphorus is most in doubt, as two thirds of the world's known resources are in two countries - Morocco and China."

Chilisai - Location, location, location

Sunkar's 100%-owned Chilisai deposit is one of the largest known phosphorite deposits in the Former Soviet Union with a resource of some 800 million tonnes of ore at 10% P2O5. The project is located 500 kilometres from the source of low cost sulphur recovered from the North Caspian oil and gas operations (the importance of which is explained below) which is connected with the project by rail road. Local infrastructure is good - a power line, railroad and natural gas pipeline cross the licence area of the company.

Sunkar is well positioned in proximity to China, which is the main target market of the project (railroad tariff of the Kazakh National railroad operator is $20 per tonne from the deposit to the western China border). However, the company also intends to use part of the future output to supply captive local markets in Russia and Kazakhstan which are both World top-10 grain producers. Due to high reserves of the deposit and access to low cost sulphur the company believes that the highest value added opportunity lies in developing an integrated phosphate fertiliser manufacturing facility at the deposit site. This facility will have one of the lowest extraction costs per unit of P2O5 in the world.

Sunkar should be able to generate early cashflow through initially producing Direct Application Rock (DAR) which is simply concentrated to a grade of around 17% P2O5, finely ground and sold to local farmers. However, this is simply picking the low-hanging fruit. The longer term goal is to produce high grade fertilisers which can be sold into international markets - principally China. This is where the North Caspian oil and gas operations come in, as they produce vast quantities of waste sulphur which can be easily shipped to the project site. Sulphuric acid is used to react with the phosphorite concentrate to produce phosphoric acid, which is then neutralised with ammonia to produce DAP.



Recent Trading

Several events in recent months have laid the foundations for future success. In December 2009 a plant scale test undertaken by an independent consultant established that the the 17% concentrate can produce acid of a quality to make ammoniated phosphate fertilisers. According to the Florida-based consultant the results of the pilot plant programs exceeded initial expectations. This was followed up in January by the release of JORC estimates for 40% of the Chilisai licence area, which confirmed that the area contains more than sufficient resources for 20 years of ore extraction at a rate of 10 million tonnes per annum. Finally, the company secured GBP 10 million of equity line finance in June, thereby putting to bed any doubts over its near-term financial position (company also has c.$7 million cash and no debt). Significantly, subscriptions will be priced at a mere 6% discount to the market price and will take place at timings and intervals and in sizes determined by the company, thereby protecting shareholders from any unnecessary dilution.

Upcoming Catalysts

Engineering contractor SNC-Lavalin has commenced a Bankable Feasibility Study for the Chilisai project, with initial results due shortly (H2 2010) and final results due in the first half of 2011. This should de-risk the project and enable the company to secure long-term financing to ramp up production and develop the fertiliser manufacturing facility on site. There is also upside potential from reserves upgrades as the company continues to explore the 60% of the project not currently covered by the JORC estimate. After the BFS, the next major catalyst will be first sales of DAR. This shouldn't prove too much of a problem given that Kazakhstan itself is a major farming nation. Further along the line, Sirius Explorations' recent agreement with the largest Chinese fertiliser company highlights the potential there.

Sunkar has a potentially highly valuable project that is underpinned by a highly favourable economic and corporate activity backdrop. Research house GMP Resources values the company using a discounted cash flow model with a discount rate of 18%. It then further discounts the net present value of the project at a rate of 80%, arriving at a valuation of 75p per share - more than 160% upside from here. Speculative buy at 28p.

Key Data
EPIC: SKR
Market: AIM
Spread: 27p-29p

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Tip of the day Wednesday's Stock Market Report from UK-Analyst: featuring Vedanta, British Airways and Rivington Street Holdings
Buy Sunkar Resources: says small cap wizard James Faulkner of WatsHot.com
Tuesday's Stock Market Report from UK-Analyst: featuring RBS, Centrica and Game
Conroy Diamonds and Gold: Speculative Buy with a 16.3p Target Price
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cyril

http://www.investegate.co.uk/Article.aspx?id=201010110700071366U

cyril

StockMarketWire.com
"Kazakhstan phosphate miner Sunkar Resources has signed an agreement with UniCredit Bank for project finance advisory services.

UniCredit will be the company's sole advisor in relation to debt financing for its Chilisai Phosphate Fertilizer Project.

CEO Donald Sinclair said, 'Sunkar aims to be one of the lowest-cost phosphate fertilizer producers in the world and this is an important step in the continuing development of the Chilisai Phosphate Project.'

A bankable feasibility study is expected to be completed in the first half of 2011. "

On the move today,up 3.25 (10% ) on a good deal of buying.
I have heard no news

Results of a BFS maybe??
cyril

Now up 4.25 at 35.25

I couldn't find any news on SKRs' own site,but something is afoot(and I'm not referring to that funny shaped thing at the end of your leg)!
However the long term need for an increase in food output must be what should make the stock a big winner.Especially so, when you consider that the issue of facing up to the prospect of mass starvation is a real issue in Russia and elsewhere.

Something going on ,up 5 at 36.

Took a risk and sold late this afternoon. No news so far and might be a drop next week if news not forthcoming. Looking for c31p re-entry level.

May be a good move Harry,but I tend to be the eternal optimist.
Trying to find out what is happening ,if anything,with some of these companies is like getting blood from a stone!

rns coming soon , good news for holders .

Upward trajectory has resumed,up 1.75 at 37.75Looks promising.
I do not feel that the potential for this stock has been fully appreciated.
Especially,with all the recent hype in fertiliser related stocks.
At any rate ,the price has doubled in the last few months.Only the beginning in my view.

Let us not also forget,that when SKR floated nearly 3 years ago at 110,there was nothing like the current hysteria which now surrounds stocks in this sector.

they will double the 110p placing .

I certainly cannot see why not.Consider also that they will have one of the lowest production cost around for phosphates.

.

Already trading well over 1 million shares with a lot of buying.

are we going to get the rns tomorrow .

i am looking at over 60p by friday.

Ranker 60p lets hope so?

Chessman yes its worth rememebering the hike at float,so i think it worth recapping on and this analyis's report is worth rereading and handy for those newer investors.
Taken from the other thread,


niceonecyril - 24 Apr 2009 11:29 - 13 of 262
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