For those that may not be clear about CNZ's profit system
dont be thrown by those that pretend to not understand the deal. This is a pure profit play. CNZ has a permitted and operating quarry with about 11,000 tons of Zeolite sitting in a pile ready for trucking. They have a nice deal with Absorbent Products Limited (APL) in Kamloops. APL goes to the quarry does the blasting, piles it and loads the Zeolite into their trucks. They ship it to their plant in Kamloops where it is processed, packaged and shipped to the customers. APL covers all these expenses. In return CNZ doesn't spend a dime and APL pays CNZ $9 per ton royalty plus 6% - 20% of gross sales which depends on the level of processing. APL has a well established plant and fleet of trucks and is a highly respected business in Kamloops. So at the end of the day CNZ sits back and collects pure profits with no equipment, mining, processing or shipping costs. Pretty simple. If CNZ sells 40,000 tons a year at $9 plus an average commission of 12% (assuming $350 per ton ) that would be a total of $52 a ton or $2.1m and with an annual burn rate of $.2m there is $1.9m pure profit divided by 25m shares = .13 per share times a 15x forward earnings =$1.95 per share. Another thing to consider is CNZ can expand the 50k ton annual quarry amount as necessary. Additionally you can see by the various sized product packages on CNZ's website they are selling 20kg bags and .45kg bags. These processed bags are fetching a far higher price than selling by the bulk ton alone and CNZ gets around 18% gross commission on these plus this commission is based on the higher gross price per total ton of packages processed this way. So the overall price per ton would be about double in these packages and the 18% on top of that with the $9 royalty and well ....... its time for you figure it out.