Corazon Mining Ltd T.CZN

Primary Symbol: CRZNF

Metals & Mining Industrial Metals & Minerals

Corazon Mining Limited is an Australia-based mineral resource and exploration company. The Company is an explorer advancing the Lynn Lake Nickel-Copper-Cobalt Sulfide Project in Manitoba, Canada, as well as the Mt Gilmore cobalt-copper-gold (Mt Gilmore) and Miriam nickel Sulfide projects (Miriam) in Australia. The Lynn Lake Nickel-Copper-Cobalt Sulfide Project is a significant Class-1 nickel resource. The Mt Gilmore Project is located 35 kilometers from the city of Grafton in north-eastern New South Wales. The Company owns an 80% interest in Mt Gilmore. Mt Gilmore is focused on multiple rare, cobalt-rich sulfide deposits, similar to Cobalt Ridge. The Miriam comprises five Prospecting License applications (P15/6135 to P15/6139 inclusive) and is located approximately 10 kilometers south-southwest of Coolgardie on an ultramafic trend, which hosts Auroch Minerals’ Miriam and Nepean Nickel Deposits.

OTCPK:CRZNF - Post by User

Corazon Mining Ltd

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Post by oldmanmikeon Apr 04, 2016 10:33am

137 Views

Post# 24727421

Sorry folks I'm out

Spent Sunday doing a cash flow analysis of this project:
My humble results:

1) Peak cash -$275M to $300M
2) Cashflow breakeven - yr.6 or 7 using PFS cost base $230/ton ore mined
3) Aver Rev. $205M/yr at current commodity prices and 1.3 F.E.
4) Profit after tax $65M/yr
5) discount cashflow (8%) w/o capital cost $480M, with capital cost $240M
6) Assumed 50% discount to buyer - $120M/220M shares = $0.55/share

Normal PFS +50%To -30% on cost base

Cross referenced other mining operations (2) Average cost $530/ton

7) Oper costs from PFS $105M/yr could be x 530/230= $240M/yr
8) Rev-Cost= ($35M/ yr)

Conclusion:
The mine is not economically feasible. Stated PFS revenue overly optimistic and costs are understated. CZN share value must be based on other holdings. $0.01/share (my guess)

GLTA

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