Our opinion on the current state of KP2Kore (KP2) is a potash mining company which owns 97% of Sintoukola Potash which has the Kola and Dougou (DX) mining leases in the Congo. Kola has a resource of 508m tons and Dougou has a resource of 1,1 billion tons of lower grade material. On 29th January 2019, the company announced the completion of a definitive feasibility study (DFS) done by a consortium of French engineering companies. The DFS showed an internal rate of return (IRR) of 17% at a price of $350 to $360 per ton generating a free cash flow of about $500m per annum. The average operating cost is under $62 per ton. The targeted production of 2,2m tons per annum gives the mine a 33-year life. In its results for the six months to 30th June 2023 the company reported a loss of $465 000 and a headline loss of 0,01c (US) per share. The company said, "The exploration and evaluation assets at 30 June 2023 was USD 167,201,357, an increase of USD 4,472,163 from USD 162,729,194 at 31 December 2022. During the Period the Company capitalised USD 1,882,884 in exploration and evaluation expenditure." In a report on the 3 months to 30th September 2023 the company said, "As at 30 September 2023, the Company held US$1.1 million in cash. There were no mining production or construction activities during the Quarter." In a review of operations for the 3 months to 31st December 2023 the company reported the resignation of its CEO, Brad Sampson and its acting CFO, Amanda Farris. Obviously, this is a highly risky penny stock because it is mining a commodity in the Congo, and it is not producing yet. An important consideration with this penny stock is that it remains relatively thinly traded with about R70 000 worth of shares changing hands each day. This makes it risky.
