re the question of zn debt, which avoids recognition of zn's assets
1st i will mention that if the 3d survey finds a commercial field many of the costs of the 3d survey will be capitalized,just as the oil exploration expenses of the mj1 well were
and if a commercial field is found and it is recognized the exploratory well mj1 was a significant factor in the discovery of the commercial field why should not those oil exploration funds be capitalized again??? they would still be capitalized if the exploratory well found a commercial field-an issue the never zn side would never address,just as zn assets are ignored and all the attention is paid to zn liabilities -which is not fair bc there are 2 sides two a balance sheet - not just one- quite a question and prospect eh-thanks
As I said before,zn operates on a pay as u go basis -the only exception to that was the convertible bonds
but u see the bonds are convertible into common stock and that conversion thus does not cost zn anything except fees
what matters in any discussion of near term financial health is the ratio of current assets(5.731 M assets on 10k) to current liabilities (4.834M)OR 1.185-anything above 1 is nice-something walmart etc have not had for most if any quarters during my observation for some time
as I pointed out below,many blue chips including walmart are very content to have current liabilities exceed current assets
most of zn's current debts are the usual unavoidables -accts payable (u cant pay vendors or employees every minute of the day etc)
pf4 zn only has a CONTINGENT[may turn out to be no debt]liability on the bonds of 345k,based on the derivative nature
the bonds themselves are CONVERTIBLE into cs which costs zn NOTHING except for fees
see notes 7-8 p.f33-34 10k
zn only pays interest -which is sometimes capitalized[strengthening the balance sheet] and sometimes not
and due to the nature of the contingent liability such liability may never materialize
so -there is the interpretation of your emphasis on zn bond debt
Imo. Do your dd before investing. I'm not a financial adviser nor compensated for my posts. They don't believe what they say, so why should you?
