STTCOMP PNX, FA LONG
Market cap 11m (approx.) cash 3m approx including recent raise.
Zinc exploration play
Few simple reasons:
Zinc keeps going up and up with now trading $1.47. Seems like Chinese might cut production like they did for coal which went nuts. This will further add to supply demand problems IMO
2. Cap raise done at 0.0105 putting the company in a decent position when it comes to cash.
3. Con notes being converted at a decent premium which is very rare. Con note converted at 1.73 which represents 65-73% premium from current price.
4. High grades and a decent resource. 4.1mt at 11.7% ZnEq with PFS completed.
5. Looks cheap in peer comparison.
6. Well funded and debt free to commence intensive zinc and precious metals exploration.
7. They mentioned in the last announcement that first results from sampling program are expected this week. This is from the near-mine and regional mapping, rock chip and sampling programs.
8. Geophysical surveys over a number of high priority zinc, copper and lead (lead is also making new highs) will commence shortly to prioritise targets ahead of drilling.
In a nut shell, zinc exploration play with a decent resource with very nice grades with a small EV. Plus plenty of news flow. I see value here.
