I left Thursday night for a 4 day trip to Paris, France. What a nice surprise to see ZEN has paid the entire trip and then some!
I know some were not thrilled with the news today but my 2 cents is this is a solid building block with timelines established. We should have news about part 1 before Christmas and Part 2 in early 2017.
James Jordan announcing a pilot scale proven process which I suspect will improve recovery from 75% and lower costs from $2046 would not only remove any doubt about ZEN having metallurgical issues but would improve the economics of the PFS. Every variable is a multiplier so increase recovery, lower costs and you have increased economics. There are some IFS here of course but I do believe RPA was conservative in their approach and James Jordan will be successful in both establishing a pilot scale process and increasing the economics of the project.
The next 2 variables that come into play are the tonnage per year and the price per ton. With the comments from Aubrey during one of his lastest interviews where he alluded to the concrete deal possibly adding significant tonnage at higher prices, these 2 variables will move up IMO.
When you put it all together, ZEN should be putting out a PFS during 2017 where they will have a proven metallurgical process at a pilot scale and where the economics should easily top $1B in NPV and if all the variables show improvement, maybe even $2B in NPV. Our current market cap, even after almost doubling from the lows still give us a meager $70M in MC so huge upside with little downside IMO over the next 12 months. With Aubrey saying things like:
Zenyatta is on a path to ramp up discussions with some of the entities that we're talking to. We're presently talking to in excess of 40. Many of them are global corporations, household names.
and
I'm expecting our collaborations will be scaled up, not only with these corporations, but also with academic institutions globally. Whether it's in Canada, Israel, Japan, and/or the U.S. All the results that we're getting are just incredible, so watch for us in the coming months. The reason we brought on a new VP of communications and investor relations is to help get the story out.We'll be fairly aggressive over the coming months in telling our story and actually feeding these good results to the market.
I think it is time to sit back and enjoy the ride!
The slow methodical move up on low volume has left many in the dust and many hope for a pull back to load back up. Good luck to them, I think they will need it. The market is telling us the old sell on news days are behind us and that was proven again today as many thought the news would be sold today...Not the case!
This Choo Choo has definitely left the station!
G.
