takeover target for vale, page-110

If any holders here are following the nickel space, the recent hostile takeover attempt by IGO for PAN shows just how undervalued CZN's Lynn Lake asset is. PAN has a sulphide nickel deposit in WA with a total resource of 218,300 tonnes nickel, 99,100 tonnes copper and 14,900 tonnes cobalt, so about twice CZN's 116,800 tonnes nickel, 54,300 tonnes copper, 5,300 tonnes cobalt. IGO's takeover offer valued PAN's asset at ~$400M, but PAN advised shareholders that valuation was low and to reject the offer. The takeover fell through, and PAN's share price has subsequently fallen, they now have a market cap just over $200M.

Given CZN's current share price, you can see how artificially low it is compared to many other similar deposits. Based on PAN's resource, CZN should have a value of ~$100M for Lynn Lake alone, or ~$0.05c per share. Remember CZN have drilling data for numerous other deposits at Lynn Lake which are yet to be collated in to the JORC, so the scope here for a JORC increase without any further drilling is pending.