CLAY HOSTED RARE EARTH PROJECT DEVELOPER
Krakatoa Resources Ltd is focused of exploring for clay hosted rare earths in Western Australia and in New South Wales and has reported a maiden Resource at its Mt Clere project in WA.
KEY POINTS
Stage of project development matters – On resource related metrics (see Valuation below)vKrakatoa is trading broadly in line with a couple of recent entrants to the clay hosted rare earth
project development sector, but at a substantial discount to companies that are further down the project development path. It already has a qualifying Resource, so as Krakatoa provides the
market with more information about its project, and particularly as it optimises its processing pathway, its share price is likely to appreciate.
Krakatoa its likely to grow its Tower Resource base substantially – It has 101Mt at 840ppm TREO and an Exploration Target of 87-519Mt at 580-1120ppm TREO. Even without a valuation multiple expansion, the Krakatoa share price should grow with increasing Resources.
The Rand clay hosted rare earth prospect metallurgy results could add shareholder value – The market is unlikely to be placing any value in the current Krakatoa share price for the Rand prospect. It has reported drilling results with a width weighted average grade of 690ppm TREO. Metallurgical results are expected shortly.
Cash at 31 March 2023 A$1.0M and raised A$0.56M in April 2023.
