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http://www.zenyatta.ca/upload/documents/presentations/zen-agm-presentation-sept-29-2016-final.pdf
That presentation is seriously a notch up from previous.
Lots of great info in there but this quote from page 33 caught my eye:
Additional tests at a larger scale are planned with a Japanese partner of Ballard
As far as I know, Toyota is the only partner of Ballard in Japan, if there are others, would be nice to know and see who could be testing our graphite.
The fact that Ballard likes our stuff so much it is getting their partners involved is great news.
This alone is worth a Choo Choo!
G.
Fluffy did such a great reporting job, I really only have 1 thing to add...
I had a long chat with James Jordan and Peter Woods after the AGM with a glass of wine.
We discussed the metallurgical process in details.
First of all, they can change some of the characteristics of the end product by how they are processing it. With the direction we are now going, graphene, they want smaller particle size and they can affect that by the process. They commented on how they don't have to jet mill at all, that the product comes out of the ground already quite fine around 20 microns average. However, depending on how they process it, they can lower that average but cannot make increase that average of course. The great thing for us is that value is highest at the smaller particle size. Other companies have to jet mill their particles heavily and that this damages the flakes.
They explained how they are doing the caustic bake in 2 liter vats, not beakers as some wish to convince us. They called this jokingly a mini pilot plant. They explained that if they had to produce 50kg in beakers, they would never get done.
James Jordan does not expect any issues scaling this up!
So the only possible achille's heal that ZEN could have and that our friends keep harping on is really a non issue.
Choo Choo,
G.
Fluffy is the cat that rich cats point to and say...that is a rich cat.
That is how it will be when ZEN hits $20 USD.
G.
A little jet lagged so hard to sleep...played with the NPV numbers a little.
Using data from PEA we get the following:
Technical Parameters
Average Grade
3.14%
Cutoff Grade
0.60%
Reserve Level at Cutoff
45,200,000
Contained Value
1,418,000
Stripping Ratio
1.82
Ore Production Rate (t/d)
3,600
Mill Recovery
75%
Operating days/year
355
Mine Life (years)
20
Financial Parameters
Current Graphite Price ($/t)
7,500
Mine Operating Cost+G&A+Selling ($/t)
16
Mill Operating Cost ($/t)
10
Total Operating Cost ($/t)
26
Mine Capital Cost
150,000,000
Mill Capital Cost
180,000,000
Total Capital Cost
330,000,000
Working Capital
50,000,000
Real Risk-adjusted Discount Rate (%)
8%
Which gives us an NPV of 600K USD and IRR was 25%. That is with revenues starting in 2020.
Using 7000 ore production rate, 85% recovery gives us 66k t/y production and $9000 per ton revenue, NPV jumps to $2.9B USD. As anyone can see, every variable is a multiplier and has a drastic effect on NPV.
IRR was 51%.
I have set up the matrix to have every ton produced costs $2,067 which is above PEA#s which again was conservative IMO.
If anyone wants the spreadsheet to play around themselves, PM me.
G.
That is spoken like someone who wants in the stock.
No way am I giving up my shares for pennies on the dollar after waiting 3 years.
So many possible catalyst at any time, would have to be crazy to sell now.
Good luck chassing!
G.