Great story
I don't want to be seen as nit-picking Zenith as it's a very high potential stock in which I've accordingly got a decent holding. But please spare shareholders the BS corporate adviser speak from today's "Strategic Review" announcement - see examples lower down - and talk to us straight.
Before those examples, I remind myself I do like:
- the cleverly assembled asset package which has several potential company makers (very well done to those involved);
- the fabulous levels of drilling activity - 12 rigs going currently for the next few months - yes!!;
- good capital structure - it's still only 323M shares although I was surprised and very disappointed at the recent CR price. I thought was too low and unnecessarily sacrificed the interests of existing shareholders. Yes, drilling costs money and our acreage warrants serious drilling (as Earaheedy proved) but 21.5c for that CR - looks like we got legged over - grrr! The following page is from the September 2021 Investor Presentation.
Under-priced - sitting duck for take-over??
Zenith IMO is currently materially under-priced and at very significant risk of an opportunistic takeover. I've posted about this risk before - in Post #: 54385060 on 9 July 2021- which was triggered by under-appreciation of Earaheedy. I've underlined parts of my earlier post for emphasis:
"Irresistible appeal to the big boys
The above is not the profile of a deposit that will stay in the hands of 'junior' companies like Zenith or Rumble. Their combined market is circa $400M; Zenith's is ~$80M.
This asset is certain to attract intense interest from multi-billion dollar base metal companies worldwide. It is only a matter of time, in my view, before one of them (or more) flops out the cheque book; mark my words.
Experience tells me that it is critical IMO that Rumble and Zenith get the most urgent understanding of what they have here so that they can present an informed view in a Target's Statement as I expect Earaheedy is highly likely to one day generate a takeover bid or similar.
Corporate Adviser's Role - and Reporting
If the "leading advisory firm" is addressing that risk, that would be one thing but how could you tell from the cringe-worthy corporate adviser waffle in today's announcement. I hope their advice is given more clearly. I can see a lot of money being spent here - for what?? I don't think this language is the work of Zenith people - it reeks corporate adviser to me.
What also concerns me re today's announcement is what is the unhelpful language really saying? Shareholders should be given more transparent and meaningful reporting please, Zenith.
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