OTCPK:CRZNF - Post by User
Post by
StocksLynxon Oct 12, 2016 2:51pm
210 Views
Post# 25336235
CZN undervalued: $42 million compared to $155 million NPV
CZN undervalued: $42 million compared to $155 million NPVKeep Calm.
Even though they corrected the NPV (because their copper byproduct will likely get no aditional revenue, depending on the final contracts and if they would concentrate the copper or not), the new updated post-tax NPV is still $155 million at an 8% discount rate, based on the fully permitted winter road. Which basically means if the all season road is denied, CZN has the same value as having $155 million now and expecting each year 8% interest on it. CZN has a current market capitalization of $52 and an enterprise value (Mcap plus debt minus cash) of around $42 million.
So you get $155 million with 8% interest for $42 million *without* the all season road, without further expansion, without further price appreciation of Zinc, Lead or Silver and without their other property.
The only risk is if and when they will become financing. Rumor was that the 2.5 billion dollar investor who owns about 20% of CZN will finance the mine:
https://www.resourcecapitalfunds.com/current-portfolio