Enter the Twilight Hi, Roadside,
Merry Christmas to you and your family; thank you very much for your reply.
As regards CZN, my plan is to cautiously wait a little bit to see how the optimization program will impact the share price, then to re-evaluate accordingly as quickly as possible.
I do think that metals prices are now becoming increasingly more important than cash. For example, have a look, please, at Polymet Mining Corp., TSX: POM. They raised about 60 million though Rights Offering to all shareholders (for every 2 shares you can buy one share at about 25% from the share price at that time). The process of Rights Offering started on around April 11, and successfully ended on around July 5. POM.TO was about 1.20 a share before Rights Offering, and guess what, the share price is 0.96 right now! Of course there has been insider buying that caused some fluctuation in SP, but, again, metals prices have made the final decision!
Right now, there are many examples about mining companies that have cash or have raised cash with their SP going nowhere, and the reason is now becoming clearer and clearer, which is that as long as there will be no stability in metals prices, then suitors, investors, traders, and everybody will be afraid to step in.
Moreover, if we take a look at the macro view, we can see that the Fed has just started tapering, the US Markets is firmly closing at all-time highs, many senior politicians around the world are now speaking about deflation, potential economic recovery in Europe, all-time low in unemployment in the US, and many other factors that do not go in favor of the mining business.
The good news is that the technical analysis expects that the top of the US Markets is near with a considerable correction to follow and also that the absolute bottom of precious metals is expected to be hit in no more than 6 months. Of course, some technical analysts are now anticipating a rally in precious metals before the real bottom is hit. Besides, many analysts now think that the recent rise in copper and zinc will probably drag gold and silver with it.
Thus, it seems that we are going to enter a 6-month twilight zone!
I own a considerable amount of CZN shares. All in all, I still fully believe that CZN is one of the best junior mining companies.
We should not forget that Couer d'Alene Mines purchased Orko Silver Corp., TSX: OK, for about 382 million on April 16 (last SP was 1.99). So, the interest is there and many suitors are there, but the current setting is not helping at all.
Let us hope that we will kick-start 2014 with an excellent optimization program!
This is my humble opinion; if you have any comment, please hit me.
I wish everyone a merry Christmas and a joyous, prosperous 2014.
Cheers
Studio10