G
“My expectation is for a buy out in February, only a short 4 months from now!”
RE by end November will de-risk this proposition even more but as to SP reaction in this market is very questionable though imo would say much higher (ex: Roth has $6.00 target price based on 23MT’s)
The NR’s 3/10 October, were exceptional news, proving synthetic characteristics (should prove a higher end-product price from Albany),…a more de-risking of the ZEN investment but did the market take notice? The short answer was no, as we were sold off after each NR.
As for end November, questioned IR on the subject last week, on the previous assumption that RE would come by mid 4Q (15th Nov) after end Oct was moved because more drilling was needed on West Pipe and we still have outstanding assays, the response,
“Aubrey stated end Nov in his presentation yesterday”,…presentation to investment communitiy in San Fran, then next day L.A., and they expect final assays to come back sooner than last set.
The upcoming RE in my view is very big in de-risking this deposit, in the eyes of producers and end-users, more imo then PEA, as costs to make Synthetic or turn Flake to Spherical are well known.
The Synthetic Market is very competitive re: cost cutting measures taken by SGL Carbons in closing the Lachute Plant. What better way to reduce costs, and be more competitive in this industry, if input product is reduced by 80% (A Buy-out of Zenyatta) by our projected $1000 aisc for synthetic like natural product, with a simple and cheap process for high purity (99.97%)
We have the Purity at low cost ($$$), we have Synthetic Qualities ($$$),…now we await the RE, “Tonnage” and “Avg Grade” confirmation, enough to support “Minelife” (20+) which would enable justification of Capex required.
IMO, Offers come soon after RE and from multiple sources now testing our product! Cheers, Mark
