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

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Up strongly today, but a "Russian roulette" stock in more ways than one

sp up > 200%?

Correct Halifax - Sad to say not in this, closed up 233%


Sunkar shares soar 160% as it completes DFS for phosphate mine
2:39 pm by Jamie AshcroftOn AIM shares in Sunkar, which was worth just £14.2mln before today, were up 6.6p or 160% this afternoon, trading at 10.75p.

Sunkar Resources (LON:SKR) shares rocketed over 160% higher today as a detailed feasibility study boosted plans to build a major phosphate fertiliser operation in Kazakhstan.

The study, completed by SNC-Lavalin International, into the proposed Chilisai project estimated total life of mine revenues of US$22.3bn.

SNC-Lavalin predicts capital expenditure costs of US$1.94bn for the two phases of the development.

On AIM shares in Sunkar, which was worth just £14.2mln before today, were up 6.6p or 160% this afternoon, trading at 10.75p.

The project has an estimated internal rate of return of 14.1% (post tax) and has a net present value of US$715mln.

According to the definitive feasibility study (DFS), production could be underway by 2016, and the project’s earnings are estimated at US$278mln a year by 2017, rising to as much as US$533mln by 2025.

Chief executive Serik Utegen told investors that the DFS has outlined ‘robust economics’ for what is a major project.

“The study has identified no major technical hurdles with the Chilisai Project and we currently anticipate announcing the award of the basic engineering contract in the second half of this year, leading to Stage I production by the last quarter of 2016," Utegen said.

Sunkar said that the DFS will now form the foundation for a prospective project financing arrangement in ‘due course’.

Chilisai has natural advantages, Utegen says, such as low cost mining, proximity to sulphur and well established regional infrastructure.

As well as defining projected economics the study published today also examined possible marketing options for Chilisai’s output.

It claims that around 60% of production could be sold into primary markets close to Kazakhstan such as Northwest China, Turkey and the countries near the Caspian Sea.

The study also concludes that Chilisai could be a competitive supplier into global markets with an export route via the Black Sea.

“Even if conservative assumptions are used for the target markets, the Black Sea export route will provide a sufficient outlet for the remaining production,” Sunkar said.

To move forward with the Chilisai project Sunkar will now look to secure financing and permits for the proposed operation.

Still on the up. If you had bought first thing yesterday, you would be seeing a 300 % !!!!! rise at the mo.

i seem to recollect that SKR's phosphorus resource was low quality - or am i wrong, as so often?

I think you are right on that , cynic , if I remember rightly. Their big plus is that being open cast mining the cost is pretty cheap. There are of course other issues which makes this one akin to Russian roulette.

Yes the phosphorus is of low quality,but this is balenced out by the size of the resource. The real problem i believe is it's stranded and transport costs are a big issue imo?

The broker consensus on future earnings makes salutary reading projecting ,as it does,increasing losses into 2016.