TidalPool wrote: You might want to do a bit of dd and your own math on a buyout price. My quess is that Taylorlee is pulling our leg with his projections, but thats just my opinion. My own personal quess right now is $20+. Here is my math.
Deposit size = 1,418,000 tons of graphite (thats from the 43-101)
Price est. = $8,500/ton (again 43-101)
Total = $12.053 billion (likely this is priced in US$ but lets just say $C=$US)
60 million shares outstanding fully diluted
= $12 billion / 60 million = $200/share
10% of that number might be a reasonable buyout price therefore $20/share
There are still plenty of further upside potential such as
1) Increase in resouces size, this seems highly probable given the very conservative way the RE was estimated in the 43-101.
2) Increased price for the product. I would base this on the price of synthetic and the fact that Dr. Chahar, a synthetic graphite expert, joined the company.
3) Demand for the resource. Ultimately any buyout price is what someone will pay, given the current demand and the potential to have more than one buyer, this could drive the price up.
4) Lastly the low potential cost for purification. This is major issue for both synthetic and flake producers and if ZEN can produce its product much easier and cheaper this will also drive up the price of the company. At the momment based on the results we have seen so far, this also looks highly likely.
So for that reason my guess is north of $20