A ramble, thinking out loud. Assuming CZI goes to a JV with OZL (OZL earning 51%) CZI gets an operator fee from OZL. I don't know how much that will be (can someone help?) but I can't see the operator fee allowing much or anything in the way of CZI funding exploration in its other areas (Mt Squires etc) though it will help pay the salaries of Bevan and some others. Also when we look at progression to OZL holding 70% then CZI has to fund 30% of the mine(s) development prior to any cash flow. (Sure the thing is bankable at that stage, but that'll be a lot of money over lots of time.) Atm CZI has likely abt $1m: not enough imo to fund a sound drilling program in its tenements outside the prospective JV. Hence I see them properly going for a cap raise and I see OZL eyeing off a real possibility of 100% of WMP.
Summary: CZI needs to make itself more sexy and less available such that SHs get a good price. That means more money independent of OZL. Comments pls.
CZI Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
