Interested to know what the opinions of this group are as to the next steps forward for this ZEN and Albany...
The things concerning to me at this point are as follows:
- Disspointing PEA results (as i previously detailed)
- Financing for the next phases of the Albany project
Not sure what ZEN's financial state currently is or what their cash burn rate is, but that year delay of PEA work coupled with extensive testing at SGS could not have been kind to ZEN's bank account.
That being said, next up is the PFS...which is by no means a cheap task to take on and ZEN will now need to look for financing to advance the project. Question is, where....
with a deflated share price and likely short term cash need, there is a good chance that ZEN will need to raise cash at the expense of dilution to current shareholders.
That tight float many have boasted for ZEN may be about to loosen up...
though in fairness, the float is still looking better than alot of other graphite exploreres.
Nonetheless, I cant help but wonder where AE will be coming up with the money for a PFS other than a large equity raise and resulting dilution...
I doubt ZEN will be able to go running for more government money yet again...and if they do it will be peanuts compared to the actual cash needs.
all of a sudden those praising AE for refusing to turn to the markets for financing at $5/share arent applauding the strategy anymore...
something to think about anyways...
again JMO
