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    

you might; i won't!

SUNKAR RESOURCES PLC

("Sunkar" or the "Company")



PRELIMINARY INFORMATION ON FEASIBILITY STUDY FOR CHILISAI PHOSPHATE PROJECT



Sunkar Resources plc (AIM:SKR) is pleased to announce the preliminary results of the Feasibility Study for the Chilisai Phosphate Project (the "Project").

The Company's aim is to build a large scale integrated fertilizer manufacturing complex in Kazakhstan, consisting of a mine based on the wholly owned Chilisai phosphate resource in the Aktobe region of Kazakhstan, and a chemical complex to convert the phosphate minerals into international grade fertilizers - DAP (di-ammonium phosphate) and MAP (mono-ammonium phosphate).

The Feasibility Study is being performed by the international engineering company SNC Lavalin ("SNCL") and is expected to be completed in H1 2011. On 3 February 2011, SNCL delivered a Preliminary Information Memorandum ("PIM"), which presents the preliminary results of the Feasibility Study with an accuracy level on cost estimates at +/- 30%.

Highlights of the PIM:

- The PIM covers the first phase of the project which has a capacity of 430 thousand tonnes ("Phase One") per annum of P2O5 nutrient in the form of MAP/DAP, half of the Project's target capacity;

- The PIM addresses most of the issues normally found in feasibility studies for mining and manufacturing projects;

- The PIM by SNCL includes a detailed mining plan and basic design for the chemical complex including actual terrain layouts for all facilities and external infrastructure;

- The material balances and throughputs of mine and plants in Phase One have been estimated by SNCL as follows:

o Mine throughput - 5 million tonnes of ore per annum with output of 2.55 million tonnes of phosphate rock per annum at 17% P2O5;

o Sulphuric acid plant output - 1.5 million tonnes with feed of 0.5 million tonnes of molten and crushed sulphur per annum;

o Phosphoric acid plant throughput - 430 thousand tonnes of P2O5;

o Fertilizer plant with a planned output of 389 thousand tonnes of MAP and 439 thousand tonnes of DAP per annum; the balance between DAP and MAP can be varied depending on market conditions;

- For the purposes of the Feasibility Study, SNCL prepared a mining plan based on the Measured and Indicated Resources model reported in the 2009 resource report issued by Wardell Armstrong International Limited, a prominent UK based mining consultancy. The resource report covers 40% of the licence area. For the purposes of developing a mining plan, 266 million tonnes of ore at an average grade of 10.4% P2O5 has been assumed as mineable out of the total Measured and Indicated Resources. A formal reserve estimation should be based on the mining plan proposed in the Feasibility Study and will be signed by a third party geologist/mining engineer, who is qualified as a Competent Person. A reserve update is expected by the end of March 2011.

- The study of the Project's economics and current value is based on capital and operating costs estimates by SNCL, fertilizer price forecasts prepared by CRU Strategies Limited combined with a project timeline consisting of a four year development and construction phase in 2011-2015 and followed by 20 years of production starting in 2015. The results of this study was as follows:

o The total Phase One revenue over 20 years production is estimated at US$8.4 billion;

o The capital cost of Phase One is estimated at US$880 million (before working capital) including the mine, the chemical complex and all necessary infrastructure and waste handling facilities;

o Nominal cash cost of DAP production of US$186 per tonne in 2016 and US$221 per tonne in 2025;

o Estimated revenue of US$324 million in 2016 increasing to US$394 million in 2025;

o Estimated EBITDA of US$171 million in 2016 increasing to US$212 million in 2025;

o Estimated Project IRR of 16.52% before tax and 13.82% after tax on a 100% equity finance basis

- The economics study is based on the conservative trading scenario where all exports (75% of output) are directed FOB to the Black Sea, which has higher transportation costs compared to other target markets (Kazakhstan, China and other CIS countries);

The final Feasibility Study is expected to be completed by end of H1 2011 and will cover the Project's full capacity at 860 thousand tonnes of P2O5 nutrient per annum. Additionally, the final Feasibility Study will incorporate:

- A detailed market study prepared by CRU Strategies Limited;

- Trading scenarios analysis for all target markets;

- Environmental and social impact assessments suitable for this stage of the Project;

- A construction plan; and

- Other items critical for the raising of project finance.

The PIM also points to further improvements to be analyzed in the final Feasibility Study which may positively impact the economic assessment of the project.



A summary of the Preliminary Report is available on the Company website www.sunkarresources.com

Serik Utegen, CEO, Sunkar Resources plc commented:

"The PIM is a major milestone for the Chilisai Project. Our contractor, SNC-Lavalin, has accomplished a world class job by quality and volume.

We are pleased with the value shown for the first half of the Project's capacity. We expect the final Feasibility Study to provide us with an assessment of the full potential of the Project at 100% capacity, which will more than double the overall value compared to the PIM and take into account certain improvements related to economies of scale."

The total Phase One revenue over 20 years production is estimated at US$8.4 billion

So an average evenue of $420m per annum,not to sneezws at.

Is this in auction? Bid is higher than the offer.

44.75/46.00 - would have been, but clearly not so now

Harry, i sold a load on news and have now bought them back some 6p cheaper,so a nice little earner.I think it's an excellent RNS,some great numbers and lokoing forward to the BFS.Still a long way off thefor real benifits 2/5 years i'm happy to hold on the strengh of todays news,as i see a gradual rise over time,not too worried about any dips as that's normal for this type of stock?

Regret to say I sold a couple of days ago as my profit was steadily being eroded away.
Will watch for a while now, but still think that the product is going to be a winner over the next few years.

Harry yes 2 years or so for some tasty returns,or maybe sooner if a bid comes along,which is quite feasable imo?So for that reason i hanging on to mine,takes the stress out of it and don't listen to some of the nonsence spouted on here.

thge SPtells you something

this company is run by nurds complete fools

HARRY
Buy back in now
Profit takers took it down to 41.75,but buying has restarted
Will finish up on the day IMHO

Tanker,your comments are about as useful as a submarine with screen doors.

did i not post yesterday that they would fall .
and i have bought 60.000 more today at avge 42.85p .
will make 60p by xmas

Down 5%. Think I will watch for a little longer. Still in down trend.

what is so captivating about this company? ...... there are surely far better places to throw money

Potash is the new hot commodity and the sp climb has been very rewarding.
Time to move on to........?..........your better places???

harry you are correct it is a shit company looking at the rns i have bought and sold my holding

we should of know by the delays it is always bad news

it will be 5 years till any profit .so 30p is true value

i have a portfolio of about 30 shares, ranging from flakey/spivvy (PXS and EOG) to quality (PMO/TLW and WPP), so it depends what you fancy and your risk/pain threshold