There was an article released today by Jon Hykawy of StormCrow. I have attached the link at the bottom if you missed it. For anyone invested in Zenyatta this article should provide you a great deal of comfort. There are many flaws in the article but I will point you to one and just how misunderstood the graphite market is. The author says and I quote:
""As a specific example, Zenyatta Ventures (ZEN-TSX.V) issued a press release on 2 September, 2014 noting that their concentrates, after being subject to a caustic roast and leach, reached 99.95% purity, measured using GDMS. This concentrate achieves battery grade, greater than 99.5% purity. But every fraction larger than 150 mesh size produced by Canada Carbon, using a presently unoptimized flow sheet, is reaching at least battery grade purity using nothing more than flotation. No additional chemical or thermal processing has been completed by Canada Carbon, or is necessary. Needless to say, the cost for Canada Carbon to produce a high purity graphite concentrate is likely significantly lower than the cost for Zenyatta to produce the same concentrate. This in no way implies that Zenyatta’s production is cost ineffective, but it does suggest that Canada Carbon may be able to produce such concentrates with a greater margin."
The author has made a critical error in his comparison, he is comparing floatation results of between 99.3%-99.7% to Zens final product at 99.95%+. There is a huge difference in purity and the market price for each. This can only be a fair comparison when the other graphite has been purified to ultra-high purity like Zenyattas. Make no mistake, those floatation results are excellent, but you are not comparing apples to apples. This is why constant DD is critical for your investment, the ultra high purity market that Zen is going after commands a significant premium over the 99.3%-99.7% material discussed in this article. I would be thrilled to do the comparison once any other graphite material has been upgraded to 99.95%+, because no other company on the planet can achieve the ultra-high purity results Zen has achieved with caustic bake alone. What will it cost to upgrade those floatation results to 99.95% like Zenyatta has?
Zenyatta has a huge competitive advantage over every other graphite company on the planet, they can get to ultra-high purity with a simple, inexpensive process. I challenge anybody to find another company that can get to 99.95%+ without the use of thermal upgrading or acid..........remember, we have a huge competitive cost advantage in the high value markets. Thus, if the experts don't understand the high-purity market, I don't expect the average Joe to understand them as well. Patience folks, IMO the lid should be coming off this very soon.
Remember do your own due diligence, particularly in the graphite space. The PEA should provide a tremendous amount of information in terms of the economics of this play, looking forward to seeing it.
Thank-you Mr.Hykawy for bringing this to the markets attention.
Quincey
http://static.squarespace.com/static/535e7e2de4b088f0b623c597/t/54369b76e4b023a48eaadcda/1412865104563/Stormcrow-CCB-WatchList%20Note-9OCt14.pdf
