STTCOMP PNX, FA LONG
Market cap 12m (approx.) cash 3.2m approx including recent raise.
Zinc exploration play
Few simple reasons:
1. Zinc keeps going up and up with now trading $1.52 plus which is yet again a 10 years high. Seems like Chinese might cut production like they did for coal which went nuts. This will further add to supply demand problems IMO.
2. Con notes being converted at a decent premium which is very rare. Con note converted at 1.73 which represents 45-50% premium from current price
3. High grades and a decent resource. 4.1mt at 11.7% ZnEq with PFS completed.
4. Looks cheap in peer comparison.
5. Well funded and debt free to commence intensive zinc and precious metals exploration.
6. Geophysical surveys over a number of high priority zinc, copper and lead (lead is also making new highs) commenced.
7. 4000m drilling program commenced a week ago so plenty of news flow expected
8. Approx 200m plus shares soaked around these levels which is a good 20% register of the company. In this excellent zinc market with plenty of news flow in coming days/ weeks, this will do very well when the lose stock is churned.
In a nut shell, I see value here.
Buy sell or hold based on individual risk appetite. All the best
Cheers
