Topic: How To Invest

Hi Pat: I’m hearing so much about Zenyatta Ventures’ Ontario graphite find these days. Is the stock a buy? Thanks.

Article Excerpt

Zenyatta Ventures, $4.75, symbol ZEN on Toronto (Shares outstanding: 59.1 million; Market cap: $280.7 million; www.zenyatta.ca) discovered its Albany graphite deposit in northern Ontario in 2011. The company’s drilling program continues to encounter high grades of graphite mineralization. Major U.S. mining company Cliffs Natural Resources (symbol CLF on New York) holds a 12.7% interest in Zenyatta. Zenyatta plans to start a preliminary economic assessment on the viability of a mine at Albany at the end of this year. The company recently received $12.7 million on the exercise of warrants. That should give it the funds it needs to continue drilling and complete the economic assessment. Many investors are interested in graphite because it is used in the lithium-ion batteries that power electric cars. But it has a number of other profitable uses, as well. For example, in the steel industry, graphite is mainly used to strengthen the bricks that line furnaces. When added to steel itself, graphite increases the metal’s carbon content and…