Zentek Ltd V.ZEN

In Perspective from Presentation

[stockswes]

Pains to write this as this will not drive the price up, But: From the latest corporate presentation, the most likely expectation for a Canadian manufacture competing on the global scale, the market would be hard pressed to get offshore North America, so would be 0.1% market penetration at 0.01 cent per mask glove. Masks sell for $1-$2 each and the manufacture has to make margin. For the combined glove and mask, from the presentation, revenue expectation, when in full production, $40-50 million per year. All good!  Gross revenue of ~0.55 cents per share. Hopefully that makes the outfit cash flow positive and even profitable.

Read further, they are only designing the equipment and creating the factory floor layout to create an assembly line. Knowing that a large engineering firm such as Bantrel is looking to create maximum revenue for Bantrel, speed and efficiency will not be the project management metric.  Then, the whole system has to be procured, installed, commissioned, de-bottle necked. How long the design, procurement, installation and production commission will take is a guess.

Based on Canadian industry practices of being 3X to 5X slower than any competitor in the world, be lucky to have a production line in operation before end of 2022. At least they are not trying to build a Canadian ship! Delivery in any calendar month of 2021, I will take my hat off before falling over in shocking disbelief. Or toast champagne with cavier as the stock price hopefully prices in future profit.

Not the “downer” syndrome, however, there are already 8-10 graphene coated disposable mask vendors on the market, and being sold into Canada. The vendors must have health Canada approval or they could not be purchased on Amazon for example.

Plus, they are only in Phase I testing and waiting for Phase 2 results in another! Getting to Phase 3 is  time consuming. Then regulatory review of 6-9 months. Little wonder the project flow chart stops after one milestone. Most project flow charts project to the end!

The backend of the presentation reads like the distraction of management on shiny beads and silver trinkets. At least we can dream of a product pipeline. Somehow they can’t let go of the mine.

[steakhouse]

Hogwash.  Please reread the report again.  Slowly. Steakhouse

[stockswes]

Commsioning of mask coating line is slated for end of Q3. Assume 10 Million masks are coated in equipment set up and commsioning. That leaves 90 million out of 100 million masks to be manufacted in the 90 days of Q4: i.e. ~1 Millions mask per day!  Did not see Phase 3 test for mask ccoating, unless not requried only the toxicity. Air conditioingin filter coating, if the line gets set up is