King River Copper Limited (ASX: KRC), formerly known as Speewah Metals Ltd, is a mineral exploration company with a market capitalisation of 140.48m, engaged in discovery and development of Gold, Silver, Copper and other minerals deposits. The company owns 100% interest in minerals exploration tenements covering approximately 785 square kilometres in the East Kimberley region of Western Australia. Further, the King River Copper tenements are located approximately 110 kilometres southwest of Kununurra and 100 kilometres south of the port of Wyndham in the Kimberley region of Western Australia.
Funds’ Requirement: The group seems to be slightly benefitting from commodity price surge despite the recent concerns on trade war between the US and China. Particularly, KRC stock was up 8.3% on April 04, 2018. On the financial front, revenue from interest was noted to be down by 21.6% to $266 in 1HFY18 from $339 in 1HFY17. The group incurred a net loss after income tax benefit of $304,780 for the half year ended 31 December 2017 against $313,029 in 1HFY17. Net cash inflow stood at $65,143 in 1HFY18 from loss of $330,183 in 1HFY17. On balance sheet side, the group had cash and cash equivalent of $780,659 in first half of the year with the working capital surplus of $756,727. Based on that, the group might require more capital in next 12 months to meet its day to day obligations. The Board of Directors are aware of additional fund requirement for next 12 months to enable the Group to continue its normal business activities and to ensure the realisation of assets and extinguishment of liabilities as and when they fall due, including progression of its exploration interests. There was no dividend declared or paid during the half year.
New prospects: Recently, the company informed about the completion of additional Whitewater pegging which has secured all of the Whitewater Volcanic areas of outcrop that the company believes to be having potential for gold exploration. The total area of Exploration License application now measures over 3,000 square kilometres. KRC completed two Reserve Circulation drill programmes at Mt Remarkable in 2017 and received positive outcome from the programme. The company’s main objective is to create shareholder wealth through the discovery and development of minerals deposits. This objective will be met through assessment of a range of minerals commodities located within its existing tenements which will support the overall growth of the company in future. On the other hand, the company has announced that it has entered into irrevocable underwriting commitments with unrelated parties for the underwriting of the exercise of 60,000,000 of the 124,410,168 ASX listed June 30, 2018 options that have an exercise price of 10 cents per share.
Improved metallurgical update: Moreover, KRC outlined the metallurgical update on its 100% owned Speewah Vanadium-Titanium-Iron Project in the East Kimberley region of Western Australia. Particularly, new magnetic separation test-work on drill core has delivered a positive result to concentrate by assaying 2.11% V2O5, 16.23% TiO2 and 66.27% Fe2O3 that is the highest grade of all Australian deposits. As a result, mass yield of this upgraded step was 33.19% into the magnetic fraction, recovering 88.47% V, 89.05% Ti and 21.05% Fe from the original core sample. It reflects that 66.81% of the mass can be rejected at a coarser grain size. This positive result reflects that Speewah high grade zone magnetite gabbro can be significantly upgraded by initial coarse grinding and magnetic separation methods and produce a magnetic-ilmenite concentrate at good grade. The stock price rose by 1614.3 per cent in past six months (as at April 03, 2018) and was relatively down in last ten days. We give a ‘Speculative Buy’ recommendation on the stock at the current price of $0.13, given the potential projects and commodity price movement.
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Gold Prospects (Source: Company Reports)
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