News: MDL Eramet Says Offer For Mineral Deposits Limited Declared Unconditional, page-8

Hi Doctor I was hoping you might be giving us a good tip.

Had a quick look at MZI before 5 o'clock drinks.

Stand alone the level debt is a deal breaker for me. That level of debt often leads to bankruptcy or crippling dilution.

Whilst MZI is at a similar point of its development to where MDL was in Dec 15 the big difference is that MDL was sitting on a brilliant suite of Assets that London institutions had chipped in $6 a share to fund. whilst the share price was sub 20c the nett asset backing was a whopping $2.56. We of course subsequently suffered a massive and IMO unnecessary dilution (most of it is still sitting in a lazy cash deposit) at 41c a share to reduce the nett asset backing to circa$1.50

MZI on the other hand has a negative 4 cent a share nett asset backing and the DFS valued the project at an NPV of $133m which compares with a current enterprise value of circa $150m which seems on a quick glance to confirm that the negative 4 cents a share is about right.

The major shareholder and lender is probably starting to worry.