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Gold/Mining/Energy : Zentek Ltd.

ZEN.V 0.900

+3.4%

11:08 AM EST

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From: ValuHunter	1/15/2016 4:32:51 PM
	22 Recommendations Read Replies (3) of 54916

Buyout is Best Option to lower LIB costs. No doubt about it! There are 3 key items to purchase for a buyer at this point. cost of the 65m shares Infrastructure costs of $400m CDN or $240m USD cost to process from ground to customer location =$2046 per ton. there is 1.4 m tons of material in total. As per the PEA on Page 19-5 the cost to produce high purity synthetic graphite runs from $6k - $10K USD per ton. For simplicity sake lets assume a buyer wants to get his graphite costs down to $10k USD per ton, all in costs to accomplish a $100/kw price point, for thier finshed product. Infrastructure cost /ton = $240m/1.4mton = $171.42/ton USD Cost to process ore to finished product = $2046/ton USD Total cost of 99.9+% pure graphite = $ 2217.42 USD Fix costs of Graphite is $10k/ ton - Total processing cost of $2217 = $7782.57 USD/ton Therefore, a buyer with a target of 10k per ton over 30 years of supply would pay 7782 X 1.4m to = 10,895, 600,000 USD for the Albany deposit or $167 USD per share. If I use the selling price of $7500 USD as per the PEA you get a per share value to Zen holders of $123 USD. I know this sounds crazy but I challenge everyone to find where I made a mistake. Bottom line is when BNS Trader suggests $22 USD per ton he is definetely NOT out to lunch! I know this seems astronomical, but it is also the reason the Chief and his indians bash this stock continuously. They are buying all the time. Have a great weekend everyone. ValueHunter

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