Ethical, sustainable locally sourced battery metals in Europe is our top long term investment theme. Zero-Carbon Copper, Nickel and Cobalt exposure all within the same company.
Opened: 21-Jan-2022
Shares Held at Open: 2,639,750
What does KNI do?
KNI holds a portfolio of battery metals exploration assets (copper, nickel, and cobalt) in Norway.
What is the macro theme?
Copper, nickel and cobalt are all metals that are required for electrification and decarbonisation.
Copper is used in EVs and EV chargers, while nickel and cobalt are used in EV batteries, notably the NCM (Nickel, Cobalt Manganese) EV batteries that should form the foundation of the European EV push.
Commodities that can be sourced in a low or zero carbon manner, should also be favoured by end users in the EV supply chain as Europe aims to meet its net-zero emission goals.
Our Big Bet for KNI
To develop a sustainable battery metals mine within European borders that is of strategic importance - and hence highly valuable as an acquisition target.
Why did we invest in KNI?
Ethical, sustainable locally sourced battery metals
Ethical, sustainable locally sourced battery metals in Europe is our top long term investment theme. Zero-Carbon Copper, Nickel and Cobalt exposure all within the same company.
Historically producing projects
Projects are not greenfield assets, targets put together together based off historically producing mines. We know the mineralisation is there with an extensive mining history that are still to be analysed with modern technology.
Impressive management team and board
KNI has the same team as behind Vulcan, with VUL remaining 25.85% shareholders in KNI. The team has the established relationships and access to potential off-takers, major investors, bankers, technology, and advisors.
Cap structure leveraged to growth
Low number of shares on issue (39 million), with VUL retaining one-quarter, meaning that the capital structure is leveraged to success. There are no options on issue to dilute shareholders positions.
What do we expect KNI to deliver?
Objective #1: Results from geophysical and geochemical surveys and analysis
Detailed evaluation of the geophysics & geochemical data-sets as well as soil/rock chip sampling assays as part of target generation works for expected drilling in 2022.
Historic drill-core logging & re-analysis of drilling data to also be incorporated in target generation works.
Objective #2: Drilling of highest priority drill targets in 2022
Target generation works expected to be completed in early-2022, with the highest priority targets to be drilled in the Norwegian summer months (mid-2022).
Objective #3: Assess and acquire new European battery metals projects
Investment thesis will be reviewed after the highest priority targets are drilled after the assays from drilling are received.
Objective #4: Identify Canadian lithium drill targets, be permitted to drill
We expect KNI to conduct preliminary exploration campaigns at its Canadian lithium projects over the coming months, and pending the results of this work, select the best targets and be fully permitted to drill by the end of 2023. [Added 9-Mar-2023]
What could go wrong?
Exploration risk
Although KNI is working with a historic mine there is potential for KNI’s drilling to show up results that disappoint - if this is the case or the drilling needs to go deeper the economics of the project could be affected
Market risk
While the commodities that KNI are targeting are at elevated prices, there is the possibility that the prices of these commodities falls, impacting the economics of the project and the ability to access financing
Funding risk
As of their September 2021 quarterly, KNI had ~$7M in cash which is sufficient funding for initial drilling. Subsequent drilling and development works will however depend on both good drilling results and commodity prices - should the drilling not go well or the commodity prices fall this would likely impact KNI’s ability to access funding for the project
What is our investment plan?
Our strategy with early stage explorers is to achieve free carry prior to the initial drilling results, which we expect in mid to late 2022. Because of KNI's European battery metals thematic, management team and connection to Vulcan we plan to hold ~60% of the initial position to see the entire story play out over at least 2 to 3 years.
Disclosure: The authors of this article and owners of Next Investors, S3 Consortium Pty Ltd, and associated entities, own 2,639,750 KNI shares at the time of writing this memo. S3 Consortium Pty Ltd has been engaged by KNI to share our commentary on the progress of our investment in KNI over time.
EU Automaker Stellantis Snaps up 19.99% of EU Battery Metals Explorer KNI
Jul 3, 2023
Jul 3, 2023 |
13 min
The fourth largest carmaker in the world, the $85BN Stellantis, just invested in our portfolio company Kuniko (ASX: KNI). Getting an automaker to buy 19.99% of your company is pretty impressive for a $28M capped pre-resource exploration company like KNI
Norway fast tracks critical minerals push - KNI in the box seat
Jun 22, 2023
Jun 22, 2023 |
12 min
Overnight Norway unveiled its new critical minerals strategy, this is all good news for our Europe based exploration Investment Kuniko (ASX: KNI), which has a number of metals exploration projects in Norway.
KNI fast tracks Canada Lithium exploration
May 22, 2023
May 22, 2023 |
7 min
Today, KNI announced fast-tracked fieldwork on its Canadian lithium exploration project in the red-hot James Bay region, with first drilling now more likely to happen this year or early next year
KNI delivers unexpected high grade, shallow intercept - biggest hit yet.
Apr 24, 2023
Apr 24, 2023 |
6 min
Today’s drill results are a very positive development. KNI “accidentally” stumbled on a high grade zone of Cobalt much closer to the surface, which now warrants further exploration to see how big it is.
KNI hits “Exceptional Mineralisation” at Shallow Depth as EU launches Critical Materials Act
Mar 23, 2023
Mar 23, 2023 |
10 min
Kuniko (ASX:KNI) has just announced five out of six drillholes have visible cobalt at its EU critical metals project, these results come just as the European Commission proposed The Critical Raw Materials Act to encourage development of European based critical materials projects.
KNI releases new assays from Cobalt project in Norway
Aug 11, 2023
Aug 11, 2023 |
2 min
Our European and North American critical minerals Investment Kuniko (ASX: KNI) released new assays from its promising cobalt project in Norway.
KNI: More promising Cobalt assays released at Skuterud
Jul 20, 2023
Jul 20, 2023 |
1 min
Our EU and North American critical minerals exploration Investment, Kuniko (ASX:KNI) released further promising assays from its Norwegian cobalt project today.
Kuniko's cobalt assays are in, more to come
Jun 1, 2023
Jun 1, 2023 |
1 min
Yesterday, our EU and North American critical minerals Investment, Kuniko (ASX:KNI) released further assays from its Norwegian cobalt project.
Kuniko releases high grade nickel assays in Norway
May 19, 2023
May 19, 2023 |
1 min
Yesterday, our European and North American critical minerals Investment, Kuniko (ASX:KNI) released nickel, copper and cobalt assays from its Ertelien project in Norway. We know Europe is very hungry for new critical minerals projects, with the Critical Raw Materials Act recently coming to prominence.
KNI intersects sulphide mineralisation at Norway copper project
Apr 18, 2023
Apr 18, 2023 |
1 min
New financial year, new opportunity for small caps stocks
Jul 1, 2023
Jul 1, 2023 |
12 min
Now that June tax loss selling is finished, that means small caps are going to go up, right? We don’t know. No one does. But we DO think things will be better now that the tax loss washout is finished.
Australia announces Critical Mineral Strategy as stocks defy tax loss selling
Jun 24, 2023
Jun 24, 2023 |
11 min
There’s only 5 trading days left in the financial year. That means the final 5 days of tax loss selling. So far, the May/June months have played out much as we expected, BUT there have been a select few companies out-performing in the gloom...
The stocks hit hardest by tax loss selling
Jun 17, 2023
Jun 17, 2023 |
12 min
Here we are, the final two weeks of June tax-loss selling. Those wanting to exit a stock and holding out for newsflow or a liquidity event are probably getting to the point where time is running out.
Who will process the world's critical minerals?
May 27, 2023
May 27, 2023 |
11 min
In this weekender, we look at how countries will process the critical minerals that are required for the hallmark transition to decarbonisation and green energy. At this point, almost all of the minerals are processed inside China, but this may soon change due to bipartisan treaties being signed between global superpowers to reduce reliance on China.
5 Battery Materials Stocks for 2023
Apr 22, 2023
Apr 22, 2023 |
10 min
In this article we shine a light on five NON-LITHIUM companies we are holding in the battery materials space.
