DD on Orebody - Insitu - Cash Flow It’s hard to understand how the Market can price Zenyatta so low, with these most recent drill results confirming todays decent tonnage estimates, closing today at $1.76, with a MCap $71.45M with only 46,597,313 shares o/s.
DD on Orebody
(So 200x125X400x2.8= gives you the amount of tonnes which is 28,000,000
We have a minimum of 5.1% Graphite with other sections running much higher but we use 5.1%
5.1% of 28,000,000 tonnes =1,428,000 tonnes of pure Lump graphite)
Today our Market Price would support an Insitu Resource discounted to 5% of 71,450 tonnes and at 5% carbon, 3572 tonnes of finished graphite (3572t x $20k = $71.4M) This Resource and current SP at this stage before a Resource Estimate and PEA, only assumes the resource is 1.4 MT’s and 71,450t of finished product.
The Real InSitu
IMO, the estimate of One Breccia Pipe is at 28 MT’s (28MT’s = 1,428,000t x $20k = $28.56B) is conservative considering the exploration potential and drilling to come. This Resource discounted to 5% would suggest a MCap of $1.428B not todays measily $71.45m ($30.64/share not $1.76/ share)
The Real Cash Flow
If 100K finished product is produced at $20K/t, this equals $2B per year.
If we have 100M shares at production, then we would have earnings/ share $15.00 per year
Now apply a x10 multiple and the supported SP is $150
The Market has a lot of catching up to do on Valuation on this play!
Cheers, Mark