Short Term Trading Weekend Thread 14-16 Sept, page-26

STTCOMP CZL, TA LONG

MC $14.8 million
SOI 925m
SP $0.016

Entering this one on TA based on the near perfect pennant set up which gives a 2.6c target, volume is declining after heavy volume on the uplift setting the scene for continuation next week.



On the FA front directors have been buying with Stephen Copulos recently stumping up $143k on market (1.43c avg). Buying in general has been insto's buying from retail.

The company have a JORC Resource of 1,178,000 tonnes @ 14.3% Zn + 2.6% Pb and have recently commenced mining at 3000 tpm @14.3% with 90% recovery = 386 tpm of zinc. Zinc ~US$2300/t Revenue should be ~US$900k/month ($1.2m Oz) plus lead and silver with 51% to CZL. Ramp up is staged with 5000 tpm from November, 6000tpm December 7000 tpm from Feb and 10000 tpm from June next year. At this point they should be generating revenue of circa US$3m/month, $US36m ($50m AU)pa with 51% to CZL. Processing is on a toll basis therefore costs are fixed with mining and sales the variables.

CZL also have an agreement in place to increase their ownership to 90%

I don't tip too often but thought this one was worth an entry.

Thanks @Mansolo