Kidman Resources Ltd
Kidman Resources Ltd (ASX: KDR) emerged from a trading halt and the stock initially rose 0.49% before trading flat on May 04, 2018 after an announcement about Refinery Site Location. KDR has announced that Western Australia Lithium (WAL), its 50:50 joint venture with Sociedad Quimica y Minera de Chile (SQM), has entered into an exclusive option with Western Australian Land Authority (Landcorp) to lease a premier site in the Kwinana Strategic Industrial Area in Western Australia. The option is for a period of 24 months during which time final lease terms will be agreed. WAL has planned to commission the refinery in 2021, with an initial annual nameplate capacity of approximately 44,000 tonnes of lithium hydroxide or 37,000 tonnes of lithium carbonate. KDR has the right to participate in up to 50% of the refinery investment and market its portion of refined product. It seems the group has been on track with regards to its schedule as it earlier mentioned to announce the proposed refinery site in June quarter.
KDR has also made changes to its management team with the appointment of a new CFO and highly experienced CEO and Project Director for the JV. With regards to KDR Options, Kidman had received notices of exercise for 29.2 million of 47.5 million options, which were said to be equated to cash proceeds of $4.4m upon conversion on 30 April 2018. The overall proceeds from the exercise of the KDRO options will be added to Kidman’s cash balance, which was $3.4m as at 31 March 2018.
The group had lately reported that there has been 54% increase in Earl Grey combined Mineral Resource Estimate as noted for the period of 1 January 2018 to 31 March 2018. This resource upgrade confirmed Earl Grey as one of the world’s most significant hard rock lithium deposits. Earl Grey is now estimated to contain 189 million tonnes of 1.50% Li2O, or 7.03 million tonnes of Lithium Carbonate Equivalent (LCE). The group is also witnessing good interest from various parties seeking lithium hydroxide offtake.
Meanwhile, KDR stock has risen 12.95% in three months as on May 03, 2018 despite the lithium sector volatility. We maintain a “Buy” recommendation on the stock at the current price of $ 2.050.
Refinery Site Location (Source: Company Reports)
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.