Hartleys tips Goldphyre shares to triple as WA potash project unfolds

Location:
Goldphyre GPH shares many a thing in common with Salt Lake S04. Both have WA sulphate of potash (SOP) projects called Lake Wells, with Goldphyre’s version located 500km north-east of Kalgoorlie, about 100km closer to Kalgoorlie than Salt Lake’s ground.

Project:
The projects would also appear to be of a very similar magnitude, with Salt Lake boasting a Resource of 85 million tonnes of SOP grading ~8.74kg/m³ while Goldphyre recently published a maiden exploration target of 79-123Mt grading 11.4-13.9kg/m³, on a like-for-like basis.


Market Caps:
But there is one stark contrast: Salt Lake’s $42 million market capitalisation dwarfs Goldphyre’s value of just $7.5 million.
Observers would rightly point to the fact that Salt Lake has a JORC-compliant resource to its name while Goldphyre is talking the more preliminary exploration target.
However, they may also argue that this is where the opportunity lies, particularly given that Goldphyre says it is on track to publish a maiden JORC resource estimate by June this year.
The obvious theme here is that, should this resource figure reflect the existing exploration target, Goldphyre’s potash inventory will match or exceed that of Salt Lake, especially in the all-important grade department.


Broker Hartleys sees substantial upside in Goldphyre shares, setting a price target of 22c in its new research report on the company – triple its current price.

“The company appears cheap on peer metrics and should continue to be re-rated as the project is de-risked.”