Took a starter here a few days back based on the chart set up and have since had a little time to evaluate the FA in more detail
Looking at the latest presentation it appears that CZL currently have a 51% stake and will soon exercise their right to acquire a further 39% from Retec for a $750k and a share based payment of $1.7m bringing total ownership to 90%
With production underway the mine is expected to be strongly cash flow postive and back of the envelop calculations support this.
Current mining is 3000 tpm at 14.3% zinc, 2.61% lead and 17gpt silver with 90% recovery, a staged development plan to increase production to 10ktpm is in place, assuming full production rates that's 44 moths of production without developing further reserves. The company plan to develop further reserves.
G&A costs are around $90k/m, C1 costs are estimated at sub 50c/lb of zinc after credits from lead and silver.
Poke those numbers into a sheet at its quite easy to see why this is running and will continue to. By the time the mine is operating at 10,000 tpm (June 2019) the EPS should be around 1.8c which would set the P/E at 1, with most larger miners sitting in the at a P/E of over 10 it seems quite realistic to expect CZL to reach at least 5 which gives a SP of 9.2c, little wonder management are happy to load up at 1.43c avg.
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