Rick Rule
Canadian Zinc Corp
CZN-T
COMMENT
Nov 09, 2017
His suspicion is that this trades better this year as a consequence of higher zinc prices. He is not attracted to it, because he wants companies that will end up in the lowest cash/cost quartile in the world, and this company won’t be among them. However, a rising tide should float all ships, particularly Canadian ships.
Received the permits for their mining operations in the North West Territories. A lot of volume on this news. Still have to prove the silver deposits. Have had no sales in the last five years.
Owns a deposit in the northern territories. They have about a 3.6 million tonne ore body of which only a small portion is provable and probable. Deposit is too small for the amount of capitalization that is required.
A trendline running up from December was broken in May. That indicates a bear. A new low in July with a higher one in September indicates a rally. If it makes a new low, don't stay in the stock. However, the stock did not keep up with zinc commodities which indicates other problems.
They have all their permits. But where do they get the financing from? But it is a timely investment. Next year one of the largest zinc deposits in the world is being decommissioned.
His suspicion is that this trades better this year as a consequence of higher zinc prices. He is not attracted to it, because he wants companies that will end up in the lowest cash/cost quartile in the world, and this company won’t be among them. However, a rising tide should float all ships, particularly Canadian ships.