NPV of $55 per share Some bashtards here want to use that figure against those who are looking into the company. The thinking is this number is so high, that those defending it would be seen as pure pumpers...well I have to agree that this number scared me the first time I found it. I reviewed all my assumptions and my calculations three times before posting it. I knew it would get attacked but still posted it and it has been almost 2 weeks now. The funny thing is I have not seen anyone punch any holes in any of my assumptions or calculations...
First point I want to make is this: even with an NPV of $55, that does not mean we will trade at this level. We have too many questions marks to answer. As we answer those questions, then the NPV gets adjusted and so does our share price. However, I expect us to be trading at 5% ($2.75) to 10% ($5.50) of this NPV in the next 3 months. If drilling shows tonnage and grade in line with my expectation, we probably will move closer to 20% ($11) of this NPV. If the PEA shows the economics of the deposit to be similar to my estimates, then we could see about 30% of that NPV ($15).
Once we get to production, we should be somewhere between 50% and 80% but I think we get bought out before we get to production if tonnage and grade are on target.
Trying to keep it real even though these are big numbers.
Here are the links to my two posts on how I calculated the NPV and a discussion of the assumptions that lead to that NPV.
https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32259259&l=0&r=0&s=ZEN&t=LIST
https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32259261&l=0&r=0&s=ZEN&t=LIST
The only caveat is can we have enough tonnage. Here is a post on that:
https://www.stockhouse.com/bullboards/messagedetail.aspx?s=ZEN&t=LIST&m=32259261&l=0&pd=2&r=0
Here also is the link to the latest corporate presentation on ZEN:
https://www.zenyatta.ca/upload/documents/zenyatta-ventures-graphite---feb2013.pdf
Happy DD everyone and remember...trust no one here and do your own DD. Your DD on this company will be the best ROI of your time!!
Glorieux