Hi Champee,
Let me run this by you, as I might be incorrect in my assessment
CZL are now getting a third party to process its zinc ore. they are planning to run a few 2500t batches per month, the contained zinc is around 12% (JORC average), they are currently accessing level 5 that has 19% zinc ore and the mine had recorded upto 50% zinc.
Each 2500t batch should contain around 300t of zinc (12% zinc), C1 costs are expected to be 50c per pound (say $100 t) Zinc price is $2400t. the C1 cost is low due to the lead and silver being given to the third party processor.
300t Zinc @ $2300t (after costs) = $ 700k for the first few month to Decemeber
After Dec they are expected to mine upto 7500t (@12%) = 900T zinc = $2 Mil per month
Am I missing something ? If a company can generate $700k per month in the next 3 months, then start generating $2mil per month in 2019, How can it have a MC of only $12mil ?
Thoughts ?
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