I have been a lurker here for quite some time. Personally, I am happy to see the change in the board. If you only look at one side, you are not seeing the whole picture, that goes from the long or the short side. I had a very large holding of Zen but decided to liquidate my position over time. Why? Because of the delays, mostly. I ended up selling my last shares on the runup before the PEA announcement. My thinking was, if it is a really good PEA, I can buy back after the stock cools down a bit, but if these delays could be warning sign, then I would be better off not in the stock. In my opinion, the PEA was not good. I was expecting a IRR of 75%, we got 24%, I was expecting a capex of $200 million to $250 million, we got $411 million. Not happy about the recovery rates either. I am not bashing, just stating facts. I still would like to reenter, but I will not until some major questions are answered. Here is my biggest concern, where will they get the $411 million dollars? And no, I don't think an offtake with Tesla is in the cards. Why would Tesla give them $411 million? At best, the mine will be in production in 4 years. So that means Tesla would not receive any product for almost 5 years. They are building the giga factory, don't you think they have better uses for their money? Try to pass that one by the board of directors. Lend a non core business $411 million and start to get your money back in 5 years, with a final break even of anound 10 to 12 years? The math just does not add up. To get the 10 to 12 years, I used $5500 savings per ton times 10,000 tons per year plus the 4 years to get into production.
I hope that Zenyatta gets their recovery rates up and that starts with the flow sheet process. I think there could be a real challenge here. I like Chahar, I like the tonnage, and I think there still may be a play here, but I need more information before I get back in, and I do want to get back in.
