RE:RE:Zen Value Proposition @ $16k/tonFor a long time I figured as my insitu value model suggests, there are 3 variables not yet answered in a concrete fashion.
- The recovery rate, which will come when SGS and NRC finish optimizing the bulk samples. IMO RR should be between 95-99+%.
- The value of the graphite on a per ton basis. This is the key variable ZEN needs to nail down. Today ZEN got lucky as a small start up company Graphene Batteries, in Norway looking to make headlines, puts out a PR stating Vein graphite was the best they tested and have a deal to purchase it at $16k per ton from the RS Group.
- The final variable is the value in the ground, which typically for mining companies ranges between 5-10%.
The price per ton is the biggest hurdle needing to be determined. This obscure news release put a value of $16k per ton as a base for ZEN vein graphite in my opinion. Now maybe ZEN will get some respect.
Graphite is not like any other commodity like gold/silver or copper where there is a spot price which moves up/down based on supply/demand ratios. Graphite prices are negotiated between buyers and sellers and are generally not placed in the public arena. Whats more is that there is 3 types of graphite and Vein graphite such as Sri Lankan and Albany graphite only represents 1 percent of the total graphite market.
You are correct though Lakeside there does not seem to be a lot of interest in the Value Proposition ZEN provides. As per usual when a buyout shows up, everyone will say they knew it all along. Do what you can. I for one appreciate your chart reading.
Muff