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  5. ZACA: Can I please have your view on ZAC. [Zacapa Resources Ltd.]
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Q: Can I please have your view on ZAC. Is there a future for this stock?

Thanks in advance. John
Asked by John on April 18, 2024
5i Research Answer:

ZAC is a micro-cap gold and silver miner that is not yet revenue producing and will likely burn through cash for a while. The company explores for silver and gold resources in Mexico. It owns 100% interests in the Zacatecas project that consists of 149 mining concessions covering an area of 7,826.3 hectares ; and the Esperanza project that consists of 7 mining concessions covering an area of 4,649 hectares. The company recently completed a private placement. There is not much news here and the company will likely continue to burn through cash and need more funding as it develops its mines. At a $29M market cap it is hard for microcaps to attract attention and it should be considered very speculative. There is a lot of work to be done here and lots of money still to be spent. AGI owns 10% of the company, insiders own 5%. It has more than doubled this year but is down 57% on a one-year basis. But, as a 9-cent stock in January it is not one we have paid particular attention to.