another zinc miner bites the dust, page-10

PEM

"The move, flagged by WestBusiness, comes amid a 50 per cent dive in zinc and lead prices in the past year and underscores the tough conditions being faced by the sector. It also comes in the wake of revelations Perilya was recording cash operating margins of just US3¢ a pound of zinc at Broken Hill."


only 3 cents a lb!!!

cash operating margins based on a spot price of 77 cents @

rosebury 50 cents
century 14 cents
golden grove 37 cents

"approximately US$ 8 cents if Century costs relate to the accelarated pre-strip - peak month July 2008, finishes in 18 months"

does anyone know what this means?

does it mean that the cost of will be reduced from 63 cents to 55 cents in 18 months?

If so costs at the biggest mine will be reduced and will give us more head room.

perhaps if we have the second biggest mine in the world we should shut it down, cut supply and push the price up?