Rockstone researchZIMTU porto with CMB and CRS
When this junior (TSX.V: CMB) announced in early 2015 to start mining gold in California/USA, the stock traded at less than 4 cents and had a market cap of around $4 million CAD. Since then, the stock appreciated. As a couple thousand tons of rock have been mined and stockpiled already, the company is about to generate sales and cash-flow. As the rocks are of such high-grade (more than 30 g/t gold), production costs should be below $700 USD/ounce, which means that the company can make money profitable – even if gold trades at $1,000 USD/oz. Our
Initiating Coverage and
Update #1 illustrate this potential success story in the making. As per our reports, neither Pasinex, Cardiff, nor CMC have large resources and deposits, but focus on small-scale mining which can be profitable and less risky than larger scaled projects. This can be seen as an advantage as large projects typically require large upfront capital expenditures and lengthy economic evaluations, which are even more daunting in times of a general market depression. Besides the Radcliff Mine, CMC owns 100% of the nearby Bishop Mill, which is in its final stages of receiving all permits to start processing high-grade material from Radcliff. Until then, a nearby smelter may come into play.
Zimtu owns 1.2 million shares of CMB, i.e. if you buy 1,000 shares of Zimtu, it gives you exposure to 89 shares of CMB.