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Good news! +.02 to C$.23. Now we need improved reserves thru the drillbit plus solid progress towards a mine to get us closer to fair value. I can wait 18 months for a multi-bagger. Bobwins
Zaruma Resources: Awards Construction Contract and Appoints General Manager Luz del Cobre Copper Project (Sonora, Mexico)
Thursday November 1, 10:53 am ET
TORONTO, Nov. 1 /CNW/ - Zaruma Resources Inc., (TSX-ZMR) is pleased to announce that the Company has awarded the Engineering, Procurement, Construction and Management, ("EPCM") contract for the Luz del Cobre Copper Project, (San Antonio, Sonora, Mexico) to M3 Engineering and Construction, Inc., (Tucson, Arizona and Hermosillo, Sonora).
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On site activities have started, with the current estimate to first production from Luz del Cobre being 14 months. As outlined in a Technical Report on the project, prepared in compliance with NI 43-101 standards, (news release November 10, 2006), Luz del Cobre is designed to produce 15 million pounds of cathode copper per year, with a pre-tax net operating cash flow estimated to average US$19.4 million per year for at least five years, at a copper price of US$2.23 per pound. The London Metal Exchange price for copper delivered in 2009 is currently approximately US$3.30 per pound.
The Company is also pleased to announce the appointment of Michael R. Carter as General Manager of the Luz del Cobre Project. Mr. Carter is a geologist with more than 35 years experience in the development, design, construction and operation of gold and copper projects.
The President and CEO of Zaruma, Thomas Utter, commented that: "We are very pleased with Mike's appointment. His experience in comparable and larger projects, and his specific experience working in the State of Sonora, where he was responsible for the overall development, construction and operations of major open pit, heap leach gold projects, will strongly support the Company in achieving its objective of developing Luz del Cobre on a fast-track basis. We are also pleased about the EPCM contract with M3, a company with an exemplary track record in building similar copper projects in Mexico".
As announced on October 5, 2007, development drilling commenced on October 1 on the open end of the Luz del Cobre ore body, and moved to the Trion area, a mineralized exploration target zone 1000 metres to the west immediately thereafter. Assays are pending at this time. The initial programme for this area calls for 3,300 metres to be drilled over three to four months.
Zaruma Resources Inc. is listed on The Toronto and Frankfurt Stock Exchanges, (symbol: ZMR). Common shares outstanding: 110,829,251.
This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including securing additional funding to continue its development programmes.
Dr. Thomas Utter, Dr.Phil.Nat, Dipl. Geo., is the "Qualified Person" as defined in NI 43-101 and is responsible for the technical information presented in this news release.
For further information
Zaruma Resources Inc., 20 Toronto Street, 12th Floor, Toronto ON, M5C 2B8, Canada, Fax: (416) 367-3638, info@zaruma.com, www.zaruma.com
Dr. Thomas Utter, President and CEO, Tel.: 521 662 222 0063, 521 662 210 5650, thomas.utter@zaruma.com
Frank van de Water, CFO and Secretary, Tel.: (416) 869-0772, fvandewater@on.aibn.com
--------------------------------------------------------------------------------
Source: Zaruma Resources Inc.
look at the time when i suggested this stock as one of the best exploration companies for this year.
Look at the PPS today and you will see next level
0.50 CAD is so clear as water.
MAKE YOUR DD
here a VERY nice DD from someone of stockhouse.com who did a lot of work on it:
Please comment on it:
Summary # 1 : 3 deals in 1
1. $ 22 m loan for LDC to be paid back by Jan 31 2011 = 3.2 years
No less than $ 25 m with interest.
Interest will apply to about 2.5 y and not the whole amount for 2.5 Y,
because they may draw that money on as needed basis - in line with
construction progress and pay them back rapidly.
Most likely Libor ( E$ = 4.2%) + 4 % = around 9%.= around $ 3 m
LDC production in 14 months = Feb 2009
2. US$1.5 million for development of the Trion area, a mineralized target zone 1,000 metres to the west of Luz del Cobre.
That will accellerate this development by 2 y ,instead of waiting for CF to pay for it.
Four months and 3,300 metres of drilling.
Results, Feb- March 08.
See page 11
http://www.goldinvest.de/public/data/documents/ZarumaResources_Luz_del_Cobre_July_Presentation.pdf
Triton is as big as LDC and LDC itself is 25% bigger than today's mining plan.
3. JV with Glencore for 1,000 ha Sapo and Carrizo deposit- 8 km from LDC
Previous drills indicate potential for hosting significant leachable copper mineralization.
G will earn 51% in that JV by spending $2.5 m and paying to ZMR $ 2 m.
NOTE: that JV applies to just 10% of ZMR 11,500 ha licences in the area
see page 12 map
http://www.goldinvest.de/public/data/documents/ZarumaResources_Luz_del_Cobre_July_Presentation.pdf
Sapo and Carrizo look like 10 times bigger deposits than LDC
Cerro Verde - for later also 10 times bigger tham LDC
THIS MAP IS SHOWING 25 TIMES BIGGER POTENTIAL THAN LDC.
25 x 15 m lbs production = 375 m lbs potential production/ y + Venezuela.
see next post
Summary #2 price trajectory
THE COMING PRICE TRAJECTORY,TARGETS
1. 21 c = 20% from here
FIRST PPS LEVEL TO BE ACHIEVED ABOUT NOW
BOTTOM LINE, new support at CASH AT HAND= cap.
$ 22m loan + 1.5 m drilling loan + 0.7 from May PP (with warrants)= $ 23.2m
That's 21c per ZAR (110m ) share
ALL THE $ 1 BILLION IN GROUND GOODIES FREE .
$ 2 m for Glencore buy -in not included.
2. 42 C = 120% from here
Add to ( 1) just 1/2 of , 10 % discounted already. NPV ( not NAV!) of $ 46 m for JUST LDC.
23m + 23 m = 46 m = 42c/sh
Still, all the $ 1 B goodies in ground free.(minus $ 23 m)
It should be at 42c level by drill results in say March 08 ,which can
delinelate another LDC -size deposit.
3. 63 c = 360% from here
A mine permited, financed and say, few months before production (almost constructed)
should trade at FULL NPV ( still discounted 10%)
23 m =46 m NPV = 67m = 63c.
Still, all the $ 1 B goodies in ground free.(minus $ 46 m)
4. $ 1.23 = 700%
Upon production removal of 10% discount to NPV.
NPV at 0% discount = $ 110m = $ 1 /sh + 23m (1) = 133m
$ 1.23 PPS will correspond with CF.
CF at $ 2.5 Cu = $ 19.4 m = 18 c /sh x 7 P/CF = $1.23 price
That's $1.3 CF per 1 lb produced = 100% gross profit margin.
Cu prices above $ 2.5 = pure gravy.
CF at $ 2.75 Cu = $ 23 m = 21c /sh x 7 P/CF = $ 1.47 price
CF at $ 3 Cu = $ 30.5 m = 28c /sh x 7 P/CF = $ 1.96 price
CF at $ 3.25 Cu = $ 34 m = 31c/sh x 7 P/CF = $ 2.17 price
CF at $ 3.5 cu = $ 38m = $ 34 /sh x7 P/CF = $ 2.38 price
Just due to sliding USD ( not to mention India doubling it's
electricity /grid demand, while China not done yet),
the Cu price by 2009 may be way over $ 4
That would be an icing on a cake, but leave the dessert for later.
http://www.mineweb.co.za/mineweb/view/mineweb/en/page36?oid=37927&sn=Detail<BR< a>
At $4.5 Cu add another $ 15 m to CF and $1 to PPS.
5.Correction for dilution.
ZMR will need $ 3 m at the end of construction = end 2009 to finish it.
Depending how high the price will SURELY go before that :
--at 30 c = 10 m sh dilution Adjust above numbers down by 10%
--at 60c = 5 m sh dilution .Adjust above numbers down by 5%
The brokers,noticing ZMR is a go and a success story with STRONG PARTNER
will bother ZMR to accept their brokered PP's
ZMR may get tempted and dilute more - to apply the $$ to THE FOURTH
READY TO GO PROJECT - St.Antonio 400k ozs (so far) gold deposit or
to accelerate the 2 copper deposits - one 100% ZMR, one 49% with Glencore.
But do not do any of that under 60 c and later not.under $ 1.2
6 .THE POTENTIAL IS FRIGHTENING ,MIND BOGGING
see page 12
http://www.goldinvest.de/public/data/documents/ZarumaResources_Luz_del_Cobre_July_Presentation.pdf
Sapo and Carrizo look like 10 times bigger deposits than LDC
Cerro Verde - for later -also 10 times bigger tham LDC
THIS MAP IS SHOWING 25 TIMES BIGGER POTENTIAL THAN LDC.
25 x 15 m lbs production = 375 m lbs potential production/ y + gold
+ Venezuela
That's $ 400m /Y PROFITS (at just $1 /lb) x P/E10 = 4 BILLION $$ COMPANY
= $ 20 price at 200m sh
100 BAGGER = 10,000 %.
Can you throw $ 10k at ZMR and forget it for 10 years to cash out $ 1m ?
(not to good idea on board full of daytraders...eh..)
50 bagger more likely if ZMR will give away 1/2 in exchange for financing
or equity finance itself.
Previous owners spent $ 23 M to draw that map and to put some numbers on it.
More than ZMR's cap now.
THIS IS OBSCENE OPPORTUNITY.
Summary # 3 What is in ZAR package
ZMR owns 4 mining D I S T R I C T S
see page 12 map
http://www.goldinvest.de/public/data/documents/ZarumaResources_Luz_del_Cobre_July_Presentation.pdf
Today's starting point- the LDC- looks like a little dot on their big map.
1/500 of their land .
Venezuela's gold is still for free.
All they need, is to make more such deals like today,
Farm it out to collect 50% with no expenses etc.
Whole Vancouver is running around Mexico and LA in search
of properties. In desperation ,they buy even old silver mines
depleted by Columbus 500 years ago.
And ZMR has HANDY,BIG,partially explored,partially NI41-101 PROVEN
land package.
Just need some money to accellerate things into mid-size league.
--------------------------
Anyway, ladies and gents, WE HAVE A MINE.
Still best kept secret
We beat the fricken gold gurus to that one.
On a cheap too.
A starting point to much greater things coming.
Muchos dinaros in any case.
Right now we have:
1. LDC under construction
2.Drilling Triton which can double the size of LDC
3.Glencore drilling 10 times bigger district than LDC with 49% for ZMR
4.PROVEN RESERVE 400k ozs. of St Antonio gold waiting for
expansion to 1 m ozs ( MAJOR GOLD CAMP) and financing
Spent so far $ 12 m = almost cap of ZMR
5. Cerro Verde district - 10 times bigger than LDC -looming
6.Venezuela gold El-Foco - so far indicated 140k ozs-
Bigger ( 13,500ha) than the 4 Mexico districts.
94k ozs NI-43-101 PROVEN.
Road accessible with camp and office in place
Greenstone belt setting. $ 8 m ( 1/2 ZAR cap) spent on development already.
http://www.zaruma.com/public/data/library/elf_propertymap_lg.gif
7.Romero- Venezuela - concession for later.
Muchos gracias Proffessores.
You not only feed your student's minds with knowledge
http://www.stockhouse.ca/bullboards/viewmessage.asp?no=15668519&t=0&all=0&TableID=0
You'll fill-up wallets too of those students who are attentive enough to see the size of a green patches on your "treasure map
Summary #4 Oct 05 action
0ct 5 Frfankfurt vol 6 m vs aver 177.5 k = 35 times aver
http://finance.yahoo.com/q/bc?s=ZMR.F&t=5d
0.105 E$ to 0.14 = 33% up and close 24% up
TSX vol 7.6 m vs aver 320k = 24 times aver .
Total F &TSX vol 13.6m = 12 % of company changed hands
http://finance.yahoo.com/q/bc?s=ZMR.TO&t=5d
0.155$ to 0.2$ = 29% up and close 11% up
This link doesn't list most actives under $ 1
http://ca.finance.yahoo.com/actives?e=to
but ZMR would be on second place in vol., ahead of Bombardier , K , G , EQN ,YRI ,ARU vol
For Monday and Tues the ball is in hands of Germans who were apparently more bullish -by 13% on close
COMPARE TO PREVIOUS SPIKES
http://finance.yahoo.com/q/bc?s=ZMR.TO&t=2y&l=on&z=m&q=l&c=
The Feb/. 06 and May 16 & 17 / 07 spikes (2 days x 6 m sh ) were caused by PPs
Not 'real market" trading.
THIS ONE, 7.6 m sh IS REAL.( with a 0.8m sh 'announcement what's coming" on Sep.06)
.FIRST REAL MARKET ACCUMULATION IN ZMR 2 Y HISTORY on TSX.
GROUND FLOOR OPPORTUNITY IN DEED.
The gold gurus , mining sites and jurnals will be next with their write-ups.
The action just started and ZMR won't be best kept secret anymore.
No more "90% sale" tag.
THIS TIME IT IS NOT FAKE ( PP driven) SPIKE.
This is BEGINNING OF REAL ASCEND towards fair value at 60c
FOR STARTERS.
More later.
Reevaluation of both ZMR assets and ZMR itself from forgotten explorer to a producer
in progress.
No more playing 0.5 c swings gentlemen.
Summary#5 Instant reevaluation to 28-37c
My first- step- target of 21 c is based on ONLY 'cash at hand '
per share
When invested in assets producing 100% gross profit margin that cash is worth much more.
The more likely INSTANT reevaluation scenario is ADDING that 21c /sh cash to whatever PPS the company traded at, before getting that cash.
16 + 21 = 37 c.= INSTANT TARGET
Glencore -The World's Master Trader in commodities ( a major suspect behind rising prices) is doing identical financings of companies around the world to the tune of $$ hundreds of millions every year.
They know what they are doing.
They did their DD/ risk assessment on ZMR before commiting a penny.
I fully trust their judgment.
--------------------------------
GLENCORE DIGRESSION
Glencore is famous of doing the best deals.
Picking undervalued assets for pennies .Investing, fixing them till they reach $$ billions in value.
Example 1; Mopani Cu/ Co mine in Mulfira - Zambia - the biggest
( 16,000 employees)in that country.
Glencore picked that one for few tens of $ millions, reorganized it,
build the biggest smelter in Africa.
Now Mopani is about to produce 400kt of Cu Equiv = almost 0.9 billion lbs at $ 1.5/lb profits.
Value of Mopani in couple of years = $6- 8 B .
A 100 bagger for Glencore,but of course it took bit longer than daytrade to get that .
G got more than money there.Through that smelter they control
1/3 of DRC and Zambian Cu prod and 1/2 of Co. (2.5% of world's Cu prod and 30% of Co.)
The hot EQN couldn't exist without G taking -off EQN concentrate .
Example 2 : Russneft an oil major out of nowhere
http://www.themoscowtimes.com/stories/2005/08/03/002.html
"Exactly where Russneft got the cash to become a major Russian player in less than three years remains unclear."- Moscow Times.
Well, apparently Moscow journalists have no idea about Glencore's
$ 500m loan to develop Rusneft assets.
http://www.reuters.com/article/innovationNews/idUSL2465222720070724?pageNumber=3
Such mind bogging growth/ profits caused a witch hunt by Puttin.
The same pattern is visible in ZMR.
Glencore turning nobody into quite a player.
Example 3: RUSAL - #1 aluminium co in world
http://www.rusal.com/
Rusal, SUAL Group and Swiss commodities trader Glencore merged in March 07
The upcomong London IPO will start from $ 30 B and end trading at
$ 50B
Well, G got it's 20% stake early for millions. They did what pre-IPO investors in GOOGLE did - ( bought-in at $ 1 of GOOG share. which went to $ 500)
End of digression
------------------------------------------------
What is even more stunning - G loaned ZMR 140% of
apparent ZMR collateral - ZMR equity of $17m .
NO ONE DOES THAT -the max debt -to asset value is 75%
THAT CAN MEAN ONLY ONE THING: G IS VALUING ZMR AT
MIN. 28 c /sh. and comfortable to grant a loan 40% higher than
today's ( TEMPORARY) ZMR equity value.
Knowing G cheapness and talent to pick-up value - G sees future
ZMR value much higher than that
Most likely upwards of 60 c.
It doesn't take a financial genius to figure that out in a first place.
Such UNUSUAL and STRONG endorsement of ZMR future by G
means only one thing.
UP WE GO.
# 6 Where $ 3 m for capex will come from?
Simple :
$ 1 m from warrants exercise
At 12, 13 , 16 c they are already or will be shortly all exercized
Most of them likely sold already.
The 20 m sh vol in 3 days between TSX and Frankfurt is
over 2.5 x bigger already than all the warrants.
$ 2 m from Glencore JV buy-in.
That 3 m is not needed for a year now anyway.
---------------------------------
Cost per tone
In 1 place they post $ 13.4/ t in another $16.4 in their TR.
Sales by tone 1% grade = 10kg= 22 lb x $ 2.7 = $ 59.4
CF /tone 59.4 -- 16.4 = $ 43
Compare to touted here TAM $ 158 / t cost.
The labour cost is under $ 1 m / y for whole LDC mine while TAM
labour is $ 555 per worker per 12 hr shift = $ 190k per worket / Y
5 TAM workers cost same as all ZMR ( 100?) employees.
TAM will spend $ 22 m just to freeze the ground to make the sinking of the shaft possible and not to drown in pouring water.
TAM cost to open and run for 1 y ( the R19 deposit is JUST for 1 Y !!)is $ 127 m.
The CF will hardly cover the expense --and then what?
TAM is not financed and not permitted.For next 3 y TAM is BS.
Maybe later after 100% dilution.
#7Drilling can expand resource by 100%
The drilling can expand resource by 100%,to 200m lb
Links to summaries #1- 5 here
http://www.stockhouse.ca/bullboards/viewmessage.asp?no=15755912&t=0&all=0&TableID=0
-------------------------------
1. The previous owners drilled 72 holes in LDC x 80-100m aver = 7.2 km.
Plus plenty of trenches,tunnels ect.
ZMR just added 13 holes ( 1.3 km ) to bring LDC to 43-101 compability.
IT took 8.5 km of drilling to define 100m lb resource.
The problem (and time wasted)with LDC was not increasing the size of resource but complicated metallurgy.
With both sulphides and oxides. Resolved now.
2 Similar,there won't be problem with documenting the resource in Trion and El Tigre FAST.
They have fair milage of holes and trenches already .
ZMR plans to drill 3km each ( 6km),starting now and ending Feb 08.(page 48 TR)
If it took ZMR to just add 1.3 km of drilling to define LDC 100m lb in 43-101
the 6 km drilling in Trion and El Tigre should achieve same result = 100 m lb.
Say, on safe side -there will be 80 m lbs MORE documented by May 08
(added time for labs)
3. But the real treat is in Glencore's JV part.
Sapo and Carrizo.1,000 ha
"Ore grade copper intercepts in trenches and isolated drill holes indicate the potential for hosting significant leachable copper mineralization."
To see how big potential there is, one have to take look at ZMR map
http://www.zaruma.com/public/data/library/sa_mineralholdings_lg.gif
Sapo and Carrizo is almost 50% bigger than CCU 680 ha claim RIGHT NEXT DOOR.
A portion of the white area between S & C and Cerro Verde is own by CCU
CCU calls it SAN JAVIER DEL COBRE
http://www.constellationcopper.com/sanjavier.php
The CCU project is comprised of at least three partly defined deposits which are from southwest to northeast: Cerro Verde, Mesa Grande, and La Trinidad.
Fifty six core holes and 21 reverse circulation holes were drilled
at San Javier in 2006. Drilling is planned to be performed throughout 2007.
A 43-101 compliant resource estimate was just issued
http://www.constellationcopper.com/art/sanjavier/43-101_007.pdf
http://www.newswire.ca/en/releases/archive/August2007/03/c3946.html
THEY JUST DOCUMENTED 639 m lbs and counting !!!!!!!!!!!
On a claim RIGHT NEXT TO Sapo and Carrizo on 2/3 smaller area.
By drilling 77 + 18 previous owner + 25/07 = 120 holes
Assuming 100m aver hole = 12km
4. Glencore $ 2.2 m program of road construction and 3 km of drilling can easy indicate 200 m lbs ( 100 lbs for ZMR) resource .
More drilling ( $ 5 m?) will be required to bring that to 43-101 compliance and to the neighboring CCU claim size
of 700 m lb !!!!! ( 350 m lb for ZMR)
5. By 2010 ZMR can add easy 350 + 100 m lb to a total with LDC
( which has itself 25% higher potential) of 550 m lb
x $3.5/lb = $2 Billion of just Cu in ground.
So, increasing production by 100% to 30 m lb /y by starting to reinvest LDC profits right in the first Y ( not paying back in full the loan) is in the cards
Increasing LOM to 20 years.
AND THE CARDS CONSIST OF 4 ACES.
I, in ZMR place would dilute at 50c or $1 to rise money ,to make it happen sooner and maybe even bigger ( The gold deposit is waiting
to be increased to a critical- mass - size of 1 m oz. )
Venezuela is hugely prospective too.
In that case we are looking at $ 2 PPS after 2010, even after dilution .
1,000% in 3 y = 300% average Y.
First 100% should happen within week(s)- to 36c.
Summary # 8 Final GUARANTEED CF =17,5 c /sh
$ 1- 1.1 target , 17.5- 18.5 c CF based only on LDC
IS THE FINAL ANSWER.
If someone offers less - NO DEAL.
The 500k oz gold,( 400k oz in 43-101) worth in ground 10% of current prices= $ 35m = $ 0.30/sh IS FREE.
Or treat that Au as a conservative 30% discount / risk buffer to that $ 1 price.(sholud be $1.3 with Au)
-----------------------------
The forward sale prices for 2009-2011 are here
http://www.equinoxminerals.com/files/document/320_Sept_11,_07_HedgingProgramCompleteFinal.pdf
For 2 H 2009 when LDC will be in production $ 2.64/lb
1 H 2010 = $ 2.61
2H 2010 = $ 2.48
1H 2011 = $ 2.41
If ZMR will have to hedge 80% of prod to secure the loan, the later they will do that, the higher the price .
Above EQN hedges arranged in Aug are by now bit higher because of forward curve going up ,to be closer with reality.
By now they must be like $2.7 /09 , 2.53 aver 2010
Raymond James said the Cu equities are becoming cheaper by the week because forward curve for 2010 Cu prices went up to $ 2.5 from $ 1.05
Looks like Cu stocks got 2 x cheaper in that metric and counting.
On the bright site that hedging GUARANTEES below CF
NOW WE HAVE ALL DATA TO CALCULATE ZMR CF
Assume they will start selling in 2 H 2009 ( will sooner)
So, first Y of prod , 80% hedged = 12m lb in 2009/10 for $ 2.6/lb aver and 20% = 3 m lb @ $ say, $ 3,5
That's $ 31.2 m + $ 10.5 m = $ 41.7 m sales = $ 2.8 average/ lb
At $ 1.4 CF / lb ( 2.8 minus $ 1.4 TOTAL cost) x 15 m lb
= $ 21 m CF
$ 0.175 /share x P/CF 6 = $ 1 target PPS
Pay back debt in 1 year. or better yet, keep it( pay just planned rate ) and invest in increasing production by say 50% out of expanded by that time resource in El Tigre ,Trion and Glencore JV by 100%= 100m lbs.
See previous post - the 100% expansion of resource by 100m lb in time for production.
In second Y they plan 18.5 m lb prod.= 30% more anyway.
80 % of it = 15 m lb at $ 2.5/lb = $ 37.5. m
20% = 3.5 m lb at say $ 3 /lb = $ 10.5 m
Total sales $ 48 m. at $ 2.6/lb aver.
18.5 m lb x 1.2 /lb CF = $ 22.2 m = 18.5 c /sh in second Y assuming sliding down Cu prices.
x 6 P/CF = $ 1.1 target PPS.
After 2 -nd Y they can be hedge and debt free and have 24-25 m lb
prod growing later to 30 m lb.
MUCH more if Glencore JV will get on line.
NOTE: CF = CF before taxes
In firsr 2-3 y ZMR may pay zero taxes because of reinvesting all money into prod growth, accellerated drilling ,paying back debt etc.
They have $5 m tax allowances till 2011 anyway ,because of years of losing money.
Hedge lowers the profits in first 2 y but makes them VISIBLE,PREDICABLE ,therefore making investment in ZMR
as RISK FREE as it can get.
Aver grade of 1% is not bad either.
----------------------------------------------------
At $ 2.7 GUARANTEED Cu price the NPV is see table page 67 TR where they only go up to $ 2.57 Cu)
0% discount - around $ 75 M = 62 c/sh
5% discount - around $ 60 m = 50 c/sh
10% discount - $ around $ 50 m = 42 c/sh
So, in worst case of 10% discount it is 120% from here.
In 1.5 y ( sooner because of market anticipation of that),
at the start of production ,the discount will be removed to zero
= 62 c/ sh = 340% from here.
Here goes mentioned above 300% aver per Y for 3 years.
With higher GUARANTEED Cu price, the cut-off grade will be also lower = higher production.
#1-5 summary here http://www.stockhouse.ca/bullboards/viewmessage.asp?no=15755912&t=0&all=0&TableID=0
# 6 http://www.stockhouse.ca/bullboards/viewmessage.asp?no=15853732&t=0&all=0&TableID=0
#7 http://www.stockhouse.ca/bullboards/viewmessage.asp?no=15853745&t=0&all=0&TableID=0
Too good , or too bad - depending on ones intentions/position-
ZAR is still best kept secret.
To bad ,the first to know the secret are mostly daytraders.
The "company maker " - Glencore is at work.
And it will show in next years.
GUARANTEED.
redsox, it is a nobrainer because they are drilling already since beginning of October and this is the fantasy this stocks needs. It will be over 0.5 within next 4 months after the news from the drill results confirm how much copper is more at Luz Del Cobre and in Trion.
The finance is not only the 22 million from Glencore, it is as well the joint venture with Zaruma´s daugther company which is a mexican company 100% ZMR owned which holds the conzessions. ZMR will get money out of that and out of all the outstanding warrants after converted.
Actually a very good situation because IMO some of the old warrants was excecuted at 0,1 CAD and sold in this news which holds the PPS down.
What are the riscs bashers will see? It is the lifetime of only 5 years but can be changed and WILL change after they announce new copper nearby at LDC or Trion or Sappho.
The second thing which may happen is that Copper will drop down to 1.25 USD per pound within the next years. Who believes that can have a look at the copper stocks, the demand and supply and will see that this is impossible.
This is a very low risc NOBRAINER with a huge mountain of copper with many opportunities of more.
Dont sell any share UNDER 0.50... i will hold mine all upto 1
Read my old entries. This is my life insurance
thanks nello..been waiting for that!!
looks like its time to run
Please see the NEWS in the board header
Good morning,
this week should be interesting for the PPS.
I expect final news daily from beginning of next week. So take your time, make your DD and your choice.
hello silicon,
I do NOT invest any cent in Chile due to political and economical problems.
You can loose all your money there. I dont take that risc.
But thanx for your ideas... please dont try to convince me, I already did my descision on that country
Hi Nellocat1, I will take a look at ZMR to see what is cooking here. You may also be interested in researching a 5 to 10 bagger in the next couple of weeks with a huge, world class porphyrys in MDMN and CDCH. They have adjoing properties 35KM outside of Santiago, Chile. They are about to do a major JV.
what is the stock symble for this?
tried zmr & t.zmr and etrade did not recognize it.
is it ZMRAF OTC
help, thanks
Thank you Nellocat1. I will take on mind. As I live in Europe maybe Frankfurt would be better (not currency conversion and less broker cost), but I will see Toronto´s pps anyway. :))
i'll forward someone tha will add a good chart for you,
i added you as assistant
Can you please help me out with that?
Could you add a chart and the sharestructure to the IBoX please.
welcome...
is a double within 4 weeks. Will be a 5 bagger in one year. And maybe much more if the exploration nearby Lu del Cobre is successfull.
I will invest all my profit from SWVC here depending how fast SWVC goes up.
Short hint: always look at both exchanges. Canada and Germany (Frankfurt) before you buy in. Sometimes there is a difference of 0.005 to 0.01 CAD plus or minus
nellocat1
whats the time frame for signed contracts,drilling,ect.
TIA
Curt
Official email from the CEO to one of the German stockholders from yesterday:
Sehr geehrter Herr XXX,
ich verstehe, dass der Markt auf Nachricht besteht. Wir werden uns in
Kuerze aeussern.
Mit bestem Gruss
Thomas Utter
Translated:
Dear Mr. XXX,
I fully understand that the market has the right to get informations. We will announce a statement in the near future.
Best Regards
Thomas Utter
Mr. Utter is CEO of Zaruma
Look at it. From the sidelines or as an investor.
You will be very happy in some weeks. And if you are patient and wait another 15 months you will be very very happy and if they find more copper on Trion project which will be 1 km away from the production line.... THEN you have a VERY VERY big thing here
3 x short time 5x midrange 10x plus if Trion has copper
oh yeah copper mines possibilities are always good investments..hehehe
I am really surprised, that nobody joins this board here.
But anyway. Have a look at this stock and watch out a tenbagger within 18 months and a 3 to 5 bagger during this year.
Do your own DD, wait for the signed contracts and go in that after that latest. It will double to triple at that time and then every month it will go up.
After new drillings started at Trion hope that they find large copper deposits there too, because then you have Zaruma over in heaven.
You can play short term and long term. Actually we have a price range that is much too low. Everybody is waiting for the contracts been signed. But that is quiet complicated because there need to be 4 contracts for Mexico, Switzerland and two in Canada.
Everything is going fine after my last conversation with the CEO and they are working on the contract side and on the preparation for building up the production. So after the signatures everything will be very very fast.
Enjoy the ride. Or stay at the sidelines and jump in directly after the news.
Hello and good morning!
Welcome in Zarumas world of copper and gold.
Please get your first impressions at www.zaruma.com and read the details
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Ticker_Symbol ZMR Cusip Number 98914P104 Wertpapierkennummber 886597 Frankfurt ZMR.F Munich ZMR.MU Berlin ZMR.BE Electronic_XTRA ZMR.DShare Transfer Agent Computershare Investment Services, Vancouver, BC, Canada Number of Shares Outstanding: 109,256,578 (124 million fully diluted) Warrants : 8,025,927 (less has to be updated) Options : 5,525,000 (less has to be updated) Directors and Executive Officers (* Independent Directors) Prof. Dr. Thomas F. Utter (Bad Vilbel, Germany) President and Chief Executive Officer Frank van de Water (Toronto, Canada) Chief Financial Officer Prof. Dr. Peter Lorange (Lausanne, Switzerland)* Michael Power (Toronto, Canada)* Mike Richings (Denver, USA)* Officers Prof. Dr. Richard Viljoen (Parktown, South Africa) Vice President Exploration Managers of Subsidiaries Alfredo Barraza (Hermosillo, Mexico) Minerales Libertad CV. De CA
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