I think we will have a pleasant surprise on or around 15th July, for full PEA disclosure and Technical Report.

The answer provided to my difference in NPV calc's, not verbatim, is the 1 June NR, presented summary results and conclusions, and that further detail can be expected in the coming full PEA, which in my words is taken to mean besides more detail, more concise and accurate too.

$115M usd's difference in NPV is big in determining current share price valuation of a prospective take-out, and shake my head at the RPA conservativeness when looking at the numbers. (ex., us$438M compared to us$553M)

Capex at us$411.5M, as contingencies taken now at us$80M will be at or near $0 by mining. (result of -$80M is an NPV at us$633.4M, using us$110M net cash flows over 22 years)

Discount Rate 10% is high, (Current NPV us$553M at 10%, is us$913M at 6%, which is more in-line current economic conditions and will go to zero year 1 of mining = NPV us$2.0 Billion)

Other uplifting NPV Factors,

Prices Paid/Tonne, RE's us$8500 - PEA us$7500, imo a surprise lurking for the 4th sector and that prices are not set for LiB, Fuel Cell and Powder Met. I believe by year 1 mining Chahar and Yamashito will have contracted higher than avg us$8500/t providing a big boost to NPV and IRR.

Mining & Processing and Recovery Rates should be better before year 1, based upon the new (2) smaller conceptual Open Pit, which will reduce Mining Waste significantly (Overburden same as) compared to the RE's, one large Open Pit encompassing the whole resource. Processing Optimization will continue until year 1 mining with more improvement than currently indicated.

RPA set a very conservative base, to enable ZEN to only work higher in Valuation. The problem, the TSXV no longer values companies, only trades them until forced to do so by Formal Offers.

Cheers, Mark (still my opinion AE and Stowe will get a Best Valued Deal, though like that Tesla Strategic Partner scenario)

ZEN reports after-Tax Cash Flows us$100M per year for 22 years (Capex us$411,465,000)

ZEN reports this NPV us $438M discounted at 10%, and a IRR 24%, imo ????

In the following sample, NPV is actually us$553M for 10% discount and IRR is 26.6% (cad 81.81 today = cad NPV c$676M /61m f/d shares = c$11.08)

2017

-411,465,000

-411,465,000

2018

Year 1

110,000,000

-311,465,000

110,000,000

2019

2

110,000,000

-220,555,900

90,909,100

2020

3

110,000,000

-137,911,200

82,644,700

2021

4

110,000,000

-62,779,800

75,131,400

2022

5

110,000,000

5,521,545

68,301,345

2023

6

110,000,000

67,613,677

62,092,132

2024

7

110,000,000

124,061,070

56,447,393

2025

8

110,000,000

175,376,880

51,315,810

2026

9

110,000,000

222,027,620

46,650,740

2027

10

110,000,000

264,437,380

42,409,760

2028

11

110,000,000

302,991,710

38,554,330

2029

12

110,000,000

338,041,100

35,049,390

2030

13

110,000,000

369,904,180

31,863,080

2031

14

110,000,000

398,870,620

28,966,440

2032

15

110,000,000

425,203,740

26,333,120

2033

16

110,000,000

449,142,950

23,939,210

2034

17

110,000,000

470,905,860

21,762,910

2035

18

110,000,000

490,690,330

19,784,470

2036

19

110,000,000

508,676,210

17,985,880

2037

20

110,000,000

525,027,000

16,350,790

2038

21

110,000,000

539,891,370

14,864,370

2039

22

110,000,000

553,404,420

13,513,050

Date

Year 1

Net Margin

NPV

Discounted

Cash Flows

Cash Flows

I also consider the “Discount Rate” high (10yr Bond Rate us2.4% + 3% risk premium) so 10% is high in current economic climate and will definitely be lowered to 6% by the first year mining (BFS).

Our same NPV at 10% of us$553M = NPV at 8% us$710,616,800, or NPV at 6% us$913,108,980

------------------------------------------------------------------------------

ZEN reported pre-Tax NPV at us $614.7M ???

Pre-Tax NPV us$1.021B at 10%, IRR 39.7% (Net Rev $5454 x 30 ktpa = us$163.62M over 22 years)

http://www.business-analysis-made-easy.com/NPV-Calculator.html

Cheers, Mark (sent to ZEN)

What a concept, as fTN and G describe. IMO it would be a smart move for Tesla in its current situation and wanting NA Supply that is long-lived for a unique product, and has currently at a minimum, ½ the resource for 22 years.

As pointed out, the us$411M Capex aside (with $80M in contingencies), it’s the supply for 20 years and avg pricing of $2055 that’s a no brainer and thoughts of a big bonus for non-dilution of ZEN shareholders.

I see the Markets Value at c$95M MCap, still doesn’t understand ZEN, nor register the future supply/demand imbalances in the clean industry growing potential and the future as a critical material forth coming and that uniqueness of the Albany Hydrothermal Graphite can provide for the markets.

ZEN’s very conservative PEA quoted pre-Tax NPV at us$614.7M, discounted at 10% for a IRR 27%, and

After-Tax NPV us$438M (10% Discount) with IRR 24%.

(ZEN will be reporting in CAD, pre-Tax NPV will be c$762.8M, after-Tax c$543M)

I guess the Market doesn’t understand what NPV means.

I thought it meant the Net Present Value today, which would mean our shares should be valued between c$8.90 – c$12.50 (based on cad 80.62) and some think maybe only at 30% NPV is in order, following that of others in the misunderstood graphite industry PEA’s.

Still at 30% shareprice should range c$2.67 to c$3.73 (after-tax to pre-tax NPV)

Hardly justified is todays c$1.55 value.

NPV are cash flows that are discounted to give the real market value today.

“If you have a string of cash flows that extend over a number of years, it is hard to decide what the value of those cash flows are. NPV is an attempt to get a measure of the value of those cash flows boiled down into one number. So we first decide on a discount rate. That discount rate should be the minimum rate of return that you would be willing to accept on your money. So then you reverse compound each of your cash flows to the present. So if you have a cash flow of $1000 that will occur 2 years into the future and your discount rate is 8% then the present value of that cash flow would be $1000/((1.08)x(1.08))=$857.34. So if you have a cash flow at 4 years in the future you would divide by 1.08, 4 times. You get NPV or the Net Present Value when you take all the present values and net them together.”

My PEA NPV numbers show higher values than ZEN reported (ran the numbers multiple times) with Capex us$411.465M over 22 years.

Try it out, http://www.business-analysis-made-easy.com/NPV-Calculator.html

Pre-Tax NPV us$1.021B at 10%, IRR 39.7% (Net Rev $5454 x 30 ktpa = us$163.62M over 22 years)

After-Tax NPV us$553M at 10%, IRR 26.6% (Net Rev us$110M)

Shareprices? C$11.23 to c$20.75 (aftertax to pretax) and at 30% there of c$3.36 to c$6.22

Based on a most conservative PEA!

There is hope in ZEN getting Fair value but not by this Market!

Cheers, Mark

Well said Siegfried,

Will just add as history repeats yet again, a good back-up plan should have been readied, ie., 4th segment, firm type pricing contract, etc., we could really use a Strategic Investor Partner.

Still think 1M shares are being dumped by TD increasing the selling pressure, forgot about CLF and dire financial condition.

PEA sets a very conservative base, $80M in contingencies 24% of Capex and on 1/2 resource. After-tax $110M cash flow is not chump change measured against are beaten down MCap now standing at $90M.

Cheers, Mark

TD just puked another 100k shares, MCap now $90m,

Thinking maybe those 1m warrants were exercised since Monday and being disposed of.

(TD was the Cliff seller last summer)

Cheers, Mark

Just to show changes over time and between reports,

Original Focus PEA 29 Oct 2012

- Report Recovery 91.3% for a 92% Cg concentrate

- then Thermal Purification for 99.99% Cg, but losses of 15% more,

Then at FS in 2014

- recovery 91% on a concentrate 97.8% Cg (what is it to 99.99%)

Also interesting was the Contingency to Capex between PEA to FS

PEA 25% or $24M on Capex $154M

FS 11.5% for a Capex $165M

As for ZEN Recovery, though not stated but numbers presented indicate 74%, err's on the conservative assumption side again in line with the Total Report presented and for ensuring future upside. Just imo, Cheers, Mark