To: ValuHunter who wrote (6989 ) 1/16/2016 1:32:47 AM From: LTGoldBull2 15 RecommendationsRecommended By 3bar Antlizzie Bills16 Canseco cbs12311 and 10 more members
Respond to of 54922 "Buyout is Best Option to lower LIB costs" ValueHunter No argument there as the most cost effective solution. The question of future ZEN valuation potential is the reason we are long based upon many scenario's that can evolve upon some type action(s) being taken. The flip side is Today’s Market Reality of ZEN or maybe one should say Market Disconnect, ZEN is very cheap,…How cheap is this Resource? $34/tonne Canadian,…Canadian you say,…ya, ya Canadian, ha, ha, ha.(now near 69 cents) (us$24/tonne) based upon 1.4 MT’s with 65M shares F/D at SP $0.73 or F/D MCap of c$47.45M,…now that’s a joke, not the Canadian. Even using the PEA’s 680 Kt’s presents a valuation of the graphite of only c$70/tonne (us$48) Using the In-Situ Valuation Metric, 10% there of would represent c$340/tonne (us$240/tonne) Pretty crazy that ZEN is valued more than 50% less than the bottom of the barrel of what Amorphous Graphite sells for in todays markets (us$600-800/tonne) What does Synthetic Graphite cost to produce??? 6k – 10K and Albany has tested as comparable or better than Synthetics used in End-user products. Synthetic Producers have to also make a profit above that of the cost of production, but ZEN is valued at c$34/t today. A big disconnect imo, that won’t be corrected until we see an official first bid, first offer, contract or strategic interest partner that will set true reality for valuation metrics based upon Albany graphite true pricing. Hopefully that day comes soon, we wait for our justification to be proved being long, cheers, Mark