RE:RE:RE:RE:Perspective please wawawacurlyloubis wrote:
They are waiting for the PEA.... It is a big step to go from a PEA or feasibility study to a profitable mine. Project capital and operating costs almost always come in higher than the forecasts made during early studies, and many projects never even get to the construction phase. Financing for these kinds of projects is difficult to get, and usually requires heavy dilution of the shares before the project reaches production, so asset values per share are eroded at every step of the financing process. No matter how good the project looks at the PEA phase, don't bet the house on it
If Zen was mining for copper, gold or some other ore, I would tend to agree. Yet in this case, since most of us believe that Zen will be bought out, the concerns of share dilution and run away costs are for the potential buyer of the Albany graphite to worry about. Time will tell.