Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Zentek Ltd. -- Ignore unavailable to you. Want to Upgrade?

To: Antlizzie who wrote (10346)	10/2/2016 10:26:35 AM
From: Glorieux	6 Recommendations Recommended By Antlizzie Bills16 Canseco cbs12311 ejasons and 1 more member Read Replies (1) \| Respond to of 54339

Antilizzie, I was trying to show what I believe is a base case for the PFS and the share prices I mentioned were trading values that the market should give Zenyatta at that time, not a buyout value. However, since you say: I was always looking at earnings per share, cash flow, or dividend yield to value what I thought shares should be worth. So I am doing that with Zenyatta. Let's look at it that way using 66,265 tons sold at $15k USD per ton and a cost of $1500 per ton which is probably some here believe reasonable. Using those numbers I get earnings of $895M USD. Using 150M shares out, that gives us earnings per share of $6USD per shares. If Corporate taxes equal exchange rate than we net out $6CAN per share which should mostly go as a dividend but let's say we have $5CAN in dividend. At a 5% yield, that gives us a share price of $100 per share. Is this what you were thinking of with your post? For those interested, using those numbers gives us an NPV of $8B and an IRR of 74%. These numbers are just for playing around so treat them as such. G.

To: Antlizzie who wrote (10346)	10/2/2016 12:06:28 PM
From: panamax	10 Recommendations Recommended By Antlizzie Bills16 Canseco cbs12311 copperknob and 5 more members Read Replies (1) \| Respond to of 54339

Antlizzie - The main thing that stands in the way of Zenyatta investors receiving the share price you speak of is the desire of potential purchasers to pay as little as possible for the asset. We want to get the highest payment and they want to pay as little as possible. Will the sale of Zenyatta be a buyer's or a seller's market? That seems to be the key point. I get the feeling that a lot of potential buyers are playing their cards very "close to the vest" to keep the share price (and any potential buy-out offer) very low. However, when the first offer comes out I also believe that other suitors will step up with their offers for fear of missing out. Zen's product has too many applications in too many markets to be overlooked. So, IMHO it will be a seller's market for ZEN shares. Now the next question is when will the bidding begin? - panamax