I am the hub leader and the defacto administator. You have been here for years and you still have not figured out how Agoracom works...Now I know why you do not understand how to value ZEN properly.

You would do yourself a favor to read the Roth report, it is all in there for you to understand.

Here is some basic math to help you start:

Roth Report has an NAV of $15 per share at a 12% discount rate, quite high on the discount rate. Then they give a 60% risk discount to get a $6 target price. This is Roth doing this, a very reputable US firm. Now to understand how undervalued we are, we have to look at all the places Roth was conservative:

12% discount rate should be standard here, so I will not change it. However, a 12% discount rate already gives this project alot of risk priced in to the NAV. To take this risk factor and than add another 60% discount is way over the top in my opinion but they would look stupid having a $15 price target on a $4 stock.

For their new target price, they have increased the tonnage from 13M tons to 23M tons. Anyone with a calculator and some geometry knowledge can calculate that the East pipe alone is about 47M tons (150mX300mX500mX2.6t/m cubed as per NR) so East pipe already double their tonnage estimate. Now you can see by the drill results to date and the geophysics that the West pipe is at least double the East pipe or 4 times the tonnage estimate of Roth. So we have 500% more tonnage than Roth is using in their very conservative numbers. That alone would increase the NAV of $15 by multiples.

Then we have $8k in revenue and $1.5k in costs yielding $6.5 in gross profit. To stay conservative, I would live with these numbers. However, there is huge upside to these numbers. Production costs have been assessed by Larry Hoover and he found that the costs of extraction should be in the neighbourhood of $500-600 per ton, a substantial saving. When looking at revenue, graphite for Li-ion batteries sells for over $15k per ton and nuclear graphite is $30-35k per ton. Now we have more work to do to prove our graphite deserves these lofty prices per ton, however, it is a very real possibility that our graphite revenue will be 2-4X higher than the Roth report Nav calculations.

So factor all this in and you can see why $7.50 is extremely conservative here Cappy. Feel free to look at the numbers and let me know where my logic is wrong.

Wake me up at $20!

G.