I.C.-
Some recent thoughts that I have had about the long-awaited PEA (inspired by a posting by L.T Gold on another board) -
Typically investors in a mining company anxiously await the release of the PEA as an important stage in project development. ZEN investors have followed that model of behavior for quite some time.
But a number of comments on this board, from knowledgeable contributors (such as you - L.T.), have indicated that ZEN is "breaking the mold" when it comes to project development. Due to the secrecy of the graphite market, and the the uniqueness of Zenyatta's graphite deposit, the company has had to go far beyond what would be typical for a Preliminary Economic Assessment. Management has had to engage in the "development " of the actual graphite product to meet the requirements requested under the many NDA's from potential graphite customers.
For some time, a few posters have expressed the opinion that ZEN will be sold before they ever produce a PEA. I am beginning to think that is a real possibility.
A potential buyer may wish to buy the product now - before the PEA reveals the rich economics of the project to other suitors. Such a bidder would be only interested in how Albany graphite meets their needs. They may wish to avoid a bidding war with another entity that wants the graphite to meet their specifications.
While this scenario may not result in the highest possible price for ZEN (as may occur in a bidding war), I am convinced the the final offer will be rich enough to meet the latent desires of current shareholders.
- panamax
