RE:For those that may not be clear about CNZ's profit systemFor those that have been reading these boards lately, this posting is the real potential details regarding what CNZ can do if they meet the maximum 50,000 ton limit which as stated can be extended beyond the 50,000.
The 50,000 limit is easily attainable from just a select few markets, and yes it requires contrats and a sales team to sell the stuff which we now have and as the NRs release CNZ is doing exactly that, getting contrats and distribution chains established. But as we know, Zeolite is somewhat new to NA and if CNZ Pursues the existing end users who currently import from the USA, atleast they can have a majority market in "Canada" and tackle other Countries IE USA and South America.
Zeolite is not a world wide mineral, and has evolved in a selected few environments hundreds of thousand years ago... BC due to volcanic activity has the "right" kind of properties to be even considered as a feed additive... don't forget, not all Zeolite is considered to be even close in the category as CNZ's Zeolite.
Don't listen to the bashers as all they want to do is flip the stock and get it as cheap as possible to make a quick buck...
Zeolite market in Canada is CNZ's as they are the only one to have actual mining permit and gouvernment approval from the Canadian Inspection Food Agency.
Let me repeat that... "the only one" Zeolite feed Additive in Canada.
and to boot, the US have approved CNZ's Zeolite with a "Organic" stamp of approval.
People, really think of the royalty potential and what it really means down the road in the years to come...visualize the potential as there are some on this board that just want to cloud your judgement.
All my opinion, and cheers to a happy weekend.
naimarantz wrote:
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.