| | | Food for thought:
Have you noticed how all of the wild predicted share price valuations put forth by posters here assume no share dilution. Where do you think the required approx $600,000,000 CDN is going to come from? Do you seriously believe future investors (who have yet to step forward) will not want a piece of the action?
What do any of those fanciful SPs look like if ZEN has over 500 million shares +warrants outstanding?
But wait - ZEN seems to have a new plan
Zen now appears to be claiming they will be in production in 2018.
Glorieux has posted that ZEN may be using a new/different process.
I'm sure you all realize both claims (or either one) make their existing PEA null and void.
They have to start over.
All existing product test results are not going to be applicable to the "new" process.
All samples sent to NDAs now have no value
Only the existing drill results will be able to be applied to the new PEA
But they need to do a lot more drilling to get more samples to test in independent labs and send out to all their NDA contacts
So, they will need LOTS of money for the new PEA (and to keep the lights on and the 3 cars leased, etc). Anticipate a $5 million (or more) PP at $0.75 or less (less is quite likely) - adding over 6 million shares of dilution. Assume they get the money.
So then ZEN can start work on the new PEA.
When PEA is done (AE will probably say "soon") they can proceed to the next step.
Then they will need more money for a PFS (more time and another PP?) Sandra says banks and brokerages are not interested. Dilution is now looking very serious. You no doubt have noticed that ZEN has made absolutely no progress towards a PFS based on the original PEA in the last 9.5 months. Assume they get the money.
Then they will need a Bankable feasibility study or else the banks and brokerages will still not be interested (more time, another PP and more dilution) Assume they get the money.
Assuming they can publish a PEA and PFS and a BFS in 20 months (less time than it took for just the first PEA) they now have 12 months to perform work that the original PEA said would take 5 years.
If you believe they are serious, they are skipping all environmental testing and permitting. They obviously cannot get rid of the time required to remove overburden and do site prep. Current law prevents them from putting even a shovel into the ground without those permits. Does anyone actually believe this could happen? The objections from the public, environmentalists, and other companies working in the Ring of Fire & Arc of Fire would likely cost several ministers their jobs while they await criminal charges- and Zen would also be charged and served with a Cease and Desist order.
But for the sake of argument and because it is the only way to meet the 2018 target, lets say ZEN gets the PEA, PFS and BFS filed and dispenses with enviro and social permitting
Oh yeah, they will again need a huge sum of money. Lets say they can shave 40% of the Capex from the original PEA by various means and by excavating only the East Pit. So now they are looking for about $350 million CDN to proceed (site prep, roads, buildings, equip, etc) to production. Now what does the Dilution look like? Assume they get the money.
So now they are ready to produce on Dec 31, 2018 with no environmental permits that would allow them to go into production,.
Is this a good plan? Should you believe the pumpers? You decide. |
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