ENERGIZER RESOURCES INC T.EGZ

Troubling...

[riverrock]

Whats troubling is that they cleared the way for an increase in share capital which even with the excellent PEA has created the falling share price.

To finance the geared 58% of the required $162M CAPEX even with the 75% JV interest would create excessive share dilution. That is why they must finance the entire project with Debt financing. DRA's creditability should help to achieve the goal of debt finamcing at a resonable rate of interest.

They might initially mine and crush only until the plant is ready to provide the PEA figure of 84,000 tonne annually at various grades and price of $1564/tonne, which didn't include Large and Jumbo Flake because of time constraint to get the PEA out.

With Large and Jumbo flake included in the two other estimates, one gave a sales price of $2000/tonne and the other $2330/tonne. After tax per share earnings for ENZR's JV interest at each of the sales figures could be $0.17/share based on the PEA and possibly be $0.27/share and $0.35/share based on the PEA with my estimates of $2000/tonne and 2330/tonne

If sales were increased to 150,000 tonne 3 years after production start -up and ENZR's average graphite sales price increased by $100 annually, after tax per share earnings could possibly be $0.44/share, $0.63/share and $0.76/share respectively.

Again, tne plus to help get 100% debt financing is that DRA with major experience and creditability is working with ENZR.