Comment by
Bwrbhk on Nov 24, 2020 2:01pm
RE:WHY ARE WE IN THIS STOCK.?
The company owns a zinc deposit in Nova Scotia that has a very positive PFS at current zinc and lead prices. The after tax NPV is $115 million at current metal prices, has a payback period of 2.4 years and an after tax IRR of 49%. The mine is fully permited to begin production and there is a plant on site. The capex to restart the mine and mill is a mere $30 million and they could be in production within 12 months once financing is obtained. Obtaining the financing is what the new management is working on and they are very qualified. With the resurgance in the price of zinc from $0.82 earlier this year to the current price of $1.25, they should have no problem obtaining the necessary financing. With a market capitalization of only $8 million the upside is huge. If you have not guessed, I am long.