ZincX Resources Corp V.ZNX

ZNX's Akie deposit would be printing money

[ndiamond]

Here are the economics of the PEA that was announced in the Akie Project.

Base case (first set of numbers) was $1.21 Zn/lb.        Table also show the value at $1.47 Zn / lb. (second set of numbers).

Economics on this project are very robust.   Would be printing money.      Someone is going to pay big $$$$$ in due time to own this deposit.


Using $1.42 Zn price on Akie PEA - IRR of 52% pre tax,  40% after tax.   NPV before tax of $1.16 billion, after tax NPV of $727 million.     Incredible.

 

Using current spot of $1.60 Zn, numbers would be even higher !

 

 Base case Spot price (1) Mine life 18 years Total payable metal (LOM) $3.96-billion $4,888-million Total operating expenses (LOM) $2,014-million $2,014-million Net (pretax) operating income (LOM) $1,946-million $2,874-million Net pretax cash flow (LOM) $1,328-million; $74-million/yr $2,257-million; $125-million/yr Net after-tax cash flow (LOM) $870-million; $48-million/yr $1,459-million; $81-million/yr Pretax NPV7% $649-million $1.16-billion Pretax IRR 35% 52% Pretax payback 2.6 years 1.8 years After-tax NPV7% $401-million $727-million After-tax IRR 27% 40% After-tax payback 3.2 years 2.2 years

[ilikezn]

I was buying a bunch today in the market - adding to my position.    I agree - the economics on this project are extremely good.   Compelling opportunity at the current share price.     I think ZNX is worth $2.00 per share at a bare minimum.    And the company also has huge exploration upside with its massive prospective claim package in the Kechika

[Rainyday]

The share price peaked around 70 cents back in 2018 when zinc was around $1.30 / lb. Today the market capitalization (fully diluted) puts a value of about half a cent a pound for the zinc + lead reserves in the ground and under a penny a pound for the 3,630 million pounds of zinc + lead (90% zinc) projected to be produced over an 18 year mine life. That's just way too low a valuation for this