pandelis ...you are correct. ZYL does need to get it out of the ground and to port.
Commercially : My take on the numbers presented is on a swings and roundabouts basis, they look reasonable. I've done a few of these and generally speaking the numbers looks plausible.
Technically : It is bothersome that they are having difficulty in resources to reserves. As I said, the $ numbers look competitive and so any hesitation in conversion can only be technical. Possibly its a terrain / logistics issue; lack of water ; I have no idea.
For better or worse I have a position in this penny dreadful. It would seem to me that the convertible notes are the key... ZYL need to stay afloat long enough to either recover its deposits re MBilia and/or dress up Kaw project for sale. ZYL management IMO don't have the capacity to develop albeit given the size contemplated, not a very complex project.
If you need a scare-fix, google Prestige Glory Limited ... who knows who they are and if anyone is following the SDL saga, feel free to be concerned ... err... very concerned.
Time will tell. I think this investment will look comfortable in the bottom drawer.
Cheers
HWK Price at posting:
2.8¢ Sentiment: Hold Disclosure: Held
