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Corazon Mining Ltd T.CZN


Primary Symbol: CRZNF

Corazon Mining Limited is an Australia-based mineral resource and exploration company. The Company is an explorer advancing the Lynn Lake Nickel-Copper-Cobalt Sulfide Project in Manitoba, Canada, as well as the Mt Gilmore cobalt-copper-gold (Mt Gilmore) and Miriam nickel Sulfide projects (Miriam) in Australia. The Lynn Lake Nickel-Copper-Cobalt Sulfide Project is a significant Class-1 nickel resource. The Mt Gilmore Project is located 35 kilometers from the city of Grafton in north-eastern New South Wales. The Company owns an 80% interest in Mt Gilmore. Mt Gilmore is focused on multiple rare, cobalt-rich sulfide deposits, similar to Cobalt Ridge. The Miriam comprises five Prospecting License applications (P15/6135 to P15/6139 inclusive) and is located approximately 10 kilometers south-southwest of Coolgardie on an ultramafic trend, which hosts Auroch Minerals’ Miriam and Nepean Nickel Deposits.


OTCPK:CRZNF - Post by User

Bullboard Posts
Post by motowngoldon Oct 09, 2003 7:20am
482 Views
Post# 6505328

My CZN price study...WOW!

My CZN price study...WOW!Canadian Zinc (CZN Toronto exchange) PRICE EXPECTATION MADE SIMPLE Another very undervalued metals/commodity play, looking to make the Hunt brothers fully infrastructured mine (that never actually made it into production), a producer. My best attempt to get an IDEA as to what price level of this stock could be in the future using data available at this present time. These calculations use different price levels of the underlying silver, zinc, lead and copper production expected from CZN. There is total number of shares outstanding of 38,000,000 as of this date. I will adjust these calculations and republish this when new information is available. A reasonable expected production of CZN after the mine is up and running at full tilt will be approximately as follows. · SILVER = 9 million ounces per year · ZINC = 100,000,000 pounds/year · LEAD = 200,000,000 pounds/year · COPPER = 45,000,000 pounds/year CZN has certain cost expectations of their production, but I am going to use these as a guide and try to break it down further into each of the 4 categories. I will be using my best judgment to arrive at what the cost of production is for each of the 4 metals. This will allow me to vary the price of the metals independently and compare the profit benefits of each. I am going to guess silver costs to be 3.50 dollars per ounce, zinc costs at .19 dollars per ounce, lead costs at .20 dollars per ounce and copper costs at .50 cents per pound. I will then arrive at a cumulative profit number for total production of all the metals, and multiply this by .70 to allow for the corporate tax burden of CZN. First lets take a look at projected CZN profits with the metals priced as they are today: · SILVER at 5 dollars/ounce · ZINC at .44 dollars/pound · LEAD at .22 dollars/pound · COPPER at .84 dollars/pound silver profit would equal 13,500,000 (dollars). zinc profit = 10,000,000 lead profit = 4,000,000 copper = 11,000,000 (dollars) So the total profit at these levels is 38,500,000. We then divide this by the 38,000,000 shares and get 101 cents per share of earnings before taxes. 1.01 x .70 = .71 cents of profit after taxes. p/e ratio of 14, historically normalized ratio = 9.94 dollars per share p/e ratio of 35, comparable to today's stock market = 24.85 dollars per share p/e ratio of 100, comparable to dot.com mania level = 71.00 dollars per share next lets take a look at CZN with numbers that represent where I think the metals will be within a couple of years. · SILVER at 10 dollars/ounce · ZINC at .80 dollars/pound · LEAD at .30 dollars/pound · COPPER at 1.10 dollars/pound silver profit would equal 58,500,000. zinc profit = 61,000,000 lead profit = 20,000,000 copper = 27,000,000 So the total profit at these levels is 166,500,000. We then divide this by the 38,000,000 shares and get 4.38 dollars per share of earnings before taxes. 4.38 x .70 = 3.07 dollars of profit after taxes. p/e ratio of 14, historically normalized ratio = 61.32 dollars per share p/e ratio of 35, comparable to today's stock market = 153.30 dollars per share p/e ratio of 100, comparable to dot.com mania level = 438.00 dollars per share finally, lets take a look at CZN with the metals at very high levels compared to today's price, but levels I believe will be achieved at some point in this precious metal/commodity bull market before we are done. In fact, these numbers may be surpassed by a long ways!!! · SILVER at 50 dollars/ounce · ZINC at 1.25 dollars/pound · LEAD at .50 dollars/pound · COPPER at 3.00 dollars/pound silver profit would equal 418,500,000. zinc profit = 106,000,000 lead profit = 60,000,000 copper = 112,500,000 So the total profit at these levels is 697,000,000. We then divide this by the 38,000,000 shares and get 18.34 dollars per share of earnings before taxes. 18.34 x .70 = 12.84 dollars of profit after taxes. p/e ratio of 14, historically normalized ratio = 179.50 dollars per share p/e ratio of 35, comparable to today's stock market = 641.9 dollars per share p/e ratio of 100, comparable to dot.com mania level = 1284.00 dollars per share These number surely confirm that CZN is undervalued even at today’s metal prices. Remember, this is a very forward looking projection and chances are there will be more shares issued and change the divisor, but this will not change the fact that this stock is an extremely leveraged play. In fact, if you were to only value this stock on the mine, mill, and land value alone (not the minerals in the land), you are talking about 150,000,000 dollars in equity. This alone would price the stock at 4 dollars/share and here we are sitting at less than .50 cents at the time of this writing. Opportunities like this do not come around very often and the risk in this stock is in whether production can actually commence unimpaired and if these production numbers can be achieved. If they are, then look out above! My disclaimer... not intended for investment advice, I’m not a professional investment thief, I do own shares in Candian Zinc and this information is based on my honest opinion only, bla bla bla, etc. feel free to pass this info on if you feel it is worthwhile! m2trains/motowngold, etc.
Bullboard Posts