Well this bodes well for the ongoing operations and EBITDA. Aside from the insanity of the world, gold miners need power. I am bit surprised at the price action today. Even without PEP just adding on these 6 MW extensions a couple times a year will help hit this 10% free cash flow growth. Which if you looked my charts gives quite a end result.
Also AUD under 60 cents helps ZEN. Gold price USD and AUD helps ZEN.
This also bodes well for the GCY and DCN outcomes. I would be surprised if any buyer appears in this market. But both operations are cash flow (profitable) right now and for the next 3+ years according to reports.
I need to dust off my 'news to look out for', but Billabong was one. And we chatted re it and how they are finding more gold and extending their project. And we chatted re how extended PPAs are very good for Zenith as the plant is in place and depreciated mostly.
I think the fact that free cash flow is plenty to keep Zenith going and growing is good. No need to beg anyone for money at this stage. Just keep on keeping on.
ZEN Price at posting:
82.0¢ Sentiment: Hold Disclosure: Held
