Hard to fathom more weakness in Zenyatta again this morning, actually gapping down and opening at $2.32 from yesterdays $2.41 close. Many theories are rampant though most notably, shares are being artificially suppressed in support of low price accumulation, on thoughts for preparation in a low offer bid, notorious for Venture Companies at a 30-40% premium to the 20 day vwap. (Volume Weighted Average Price) Hope we have the Votes, as this scenario would be most unjust.
Zenyatta has proved much since the spring, initially on bench scale Purity at 99.97% Cg, this seasons drill program, with consistant exceptional results and assays, that one can extrapolate and assume a large resource that would support a long minelife, unofficially. ZEN management imo has recently dropped the ball, though don’t get me wrong, I’m a big backer of this issue but just feel reporting could be so much better to counter act the negative market.
1. Resource Estimate – instead of delaying the 30 October date for this estimate, now x2, at the request of RPA for further drill testing of the larger West Pipe. Why not, release an Initial Resource Estimate on the East Pipe only end October, then comeback to market with a Revised Estimate, that includes the larger West Pipe by years end? (East Pipe alone with higher average grade would prove a mine)
2. Characteristics – Our Graphite samples have been under study and analysis by FOUR Universities for Graphite Characteristics and more importantly, the Synthetic-like characteristics that would allow entry into this high margin market. Why only 2 reports? The NR 3 Oct reported on “Electrical Resistivity”, one characteristic and the week after 10 Oct, “Surface Area Crystallinity” a second characteristic. Both reports were exceptional in there own right but isn’t there more? These studies were supposed to be completed by end Sept., wouldn’t these Universities test all characteristics? Wouldn’t these Universities test our samples against synthetic specs currently used in end-user products and show the best End-Use for our product?
Anyways, these are my concerns as I just think these last few months could be better managed against a market that is most negative since the “Short Attack” 9 Sept., if not hostile to anything ZEN.
Cheers, Mark (below the Battery Grade pricing)
Battery Grade Graphite Pricing
(from the Focus Graphite feasibility last year)
RPA has reviewed various price scenarios and has assumed the following price assumptions
in its economic analysis:
• Battery Grade, 99.95% Cgr: US$10,000/t FOB mine (US$9,572/t CIF equivalent)
• +200 mesh, >90% Cgr: US$1,300/t FOB mine (US$1,237/t CIF equivalent)
• -200 mesh, >80% Cgr: US$800/t FOB mine (US$600/t CIF equivalent)
Freight and insurance costs are projected to be approximately $63/t for product sold to
customers in the United States, $200/t for deliveries to Europe and $428/t for deliveries to
Asia.
