OTCPK:CRZNF - Post by User
Post by
StocksLynxon Jul 09, 2016 9:04am
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Post# 25037872
Resource Capital Fund almost doubled its investment in CZN
Resource Capital Fund almost doubled its investment in CZNYesterday, Resource Capital Fund VI L.P. filed that they bought another 20 million shares of CZN. I assume this came from the new shares the company issued recently. The CEO took also part and does hold 2,620,500 shares (1% of the company) as of July 7th. RCF holds now more than 17.3% of Canadian Zinc. RCF has a good track record to pick successful companies.
ZHONGRUN RESOURCES INVESTMENT CORP seems to still hold 15 million shares they acquired as new shares in 2012.
Combined metal prices are already above their base line at which CZN calculated the after-tax 8% discount NPV of C$302M, without any further resource expansion and any further price appreciation.
Simplified 8% discount NPV means, that you would today invest C$302M at 8% interest, you would end up with the same profit as what CZN would get in the base scenario.
The good news is, you don’t need to pay the C$302, you currently can buy CZN for C$75M. You can do your math what that means, especially if Silver and Zinc have higher prices over the mine life than today and if the resource gets further expanded (CEO said doubling might be possible).
Sources:
https://www.resourcecapitalfunds.com/rcf-history
https://www.insidertracking.com/company?menu_tickersearch=CZN%2ACA%20%7C%7C%20Canadian%20Zinc
https://www.sedi.ca/sedi/SVTIIBIviewResults?locale=en_CA
https://www.canadianzinc.com/investor/slideshows