yes, chief, just goes to show what can happen when many shareholders don't understand math and science. Zenyatta has only published one document on the economics of the Albany deposit, the PEA which was released in July 2015. The PEA demonstrated that the economics were poor and they have only significantly deteriorated since then.
The PEA was only considered positive because Zenyatta projected selling approx 7,500 - 9,000 tonnes of graphite at $12,000 per tonne into the lithium-ion battery market segment. This revenue steam was expected to account for over 40% of annual sales. Does anyone believe that these market terms are available today or will be in the future? The zennanites would probably claim that it doesn't matter, they intend to produce graphene. Great, what's the process flow sheet, how much will it cost to produce and what are the market conditions - prices, demand and supply? Aubrey can't even raise a fraction of the $10 million required to properly fund the necessary research.
With a massive CAPEX requirement, Zenyatta's graphite must sell for astronomic premiums (compared to other graphites) in order for the project to be viable. So far, there is zero evidence. Thus, AE's strategy of buying time while maintaining the lifestyle to which he has become accustomed. |
