Just bought into this stock, anybody else a shareholder?

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."