Friday, July 23, 2010

Canada Zinc Metals is Halted CZX.v, TNR.v,, RM.v, CLQ.v,,,,,,, FCX, BHP, RTP, TEC,,,

Warren Buffett speaking to a group of students...Image via Wikipedia

Warren Buffet mentioned along the lines, that in order to be the great investment story the business behind it should be really boring. Canada Zinc Metals with its Zinc deposit in Canada will pass this test at the first glance. What can be duller than Zinc in times of Twitter, Tesla and iPads? In order to get our idea you need to have a look at three things here: chart above with exponential growth in Car sales in China, Chart below with Zinc priced for a Double Dip and CZX.v corporate structure. Chinese Tongling holds now close to 20% in the company. Latest placement was with another Chinese investor at 0.6CAD with premium to the market of more than 30% (CZX.v now is at 0.45CAD). This investor controls now more than 10% of Canada Zinc Metals according to filing. With good odds for deposit to be expanding and blue sky potential of the new discoveries we think that the company is very close to more aggressive move by Tongling in order to secure the potential of this region play in Canada. For us it will be very interesting to see the destiny of investment stake by CZX.v in TNR Gold in this case, when Togling will become a partner with strategic opportunities in Lithium and REE investment and can be potentially involved in huge Argentinian Copper play at Los Azules."
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