You have a good point. In general, an exploration company is there to explore. The more resources it develops the better the price it can get for its deposits, assuming good economics.
And yes you are right, finding a pipe that would be larger in size,with same characteristics but with much higher grade would be another game changer for ZEN stock and business. But what are the odds? One in a thousand?
The graphite market is small and complex, it ain't simple and huge as gold. So the demand side must be study carefully. I think that the sooner we (and that includes end users) know where ZEN's product fits exactly, the easier it will be to determine a value for whatever quantity of its unique graphite ZEN's discovers. Here the odds of discovering the reality about the market are 100%.
For example, if the perfect fit is the LI-Ion battery market and only that, then ZEN has probably enough resources for a few decades of production. Then why searching for more deposits? Better to bring up the quality of the current resources to the "proven & probable" category.
This approach limits the risks for the company and its shareholders. Cash is king. Dilution is the killer.
If this project was gold, I would say drill, baby drill and agree 100% with your position, as one can never find too much economic gold.
For instance, don't you think it is very important to determine as soon as possible if ZEN's graphite is a candidate for replacement of pet needle coke? If ZEN'S product is a needle pet coke killer, what happen to the stock price, even without a new discovery?
I also hope they eventually "swiss cheese" the area but only after and if they find out that they will need a lot more graphite to supply a market they know they have.
Respectfully, I agree that we disagree on that matter. |
