re: Ann: Mbila Bankable Feasibility Study In...
I may stand corrected so please let me know!
I bought into ZYL about 18 months ago. at a price range of around $0.15>$0.17c. I was told that anything below $0.20c was a good buy.
when I bought, zyl only had the Kangwane project. they did not have the Mbila project.
the stock tracked up to around $0.25c based on the story that they had strong financial backers looking to buy in or develop "off take agreements" now as I recall, the Kangwane project was the main event and then it was pushed out? the project is still the same size and is still being developed?
the Mbila opportunity came up and ZYL took a stake in the project? they have since opted to make that the priority based on all due diligence?
So here we now stand with the management looking at the due diligence and all the history and are rightly saying we are not sure if the numbers stack up!
If the news comes in that Mbila is in fact a project that can be developed and perhaps renegotiated with the Vendor for more coal prospecting areas, then we should see some upside.
If the Mbila project is a no go then ZYL would need to remove themselves from the York buyout and concentrate on Kangwane? they would also get some or most of their money back for the deal given that nothing has been exchanged as yet.
So why then is there just such a negative attitude to the management? most of this news is based on the fact that ZYL is an exploration company?
I'm simply trying to look at all options. and understand why people are frustrated.
I leave one last question on the table. what if Mbila passes the Geo / resource test and the Vendor agrees to a larger are to mine and with that ZYL gain a finical backer to take them through to 2014 and mine development?
ZYL is a long play with 2 > 5 years before it makes money. but if and when it does it may have been worth holding.
My thoughts only and I agree that its frustrating to get news of this nature as a share holder.
W1
HWK Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
