michelmore still persisting with century, page-14

Thursday, 20 November 2008

Adam


A few weeks earlier, Oz Minerals boss, Andrew Michelmore (who was previously the CEO of Zinifex) noted that the company would consider ceasing production at its Century mine. Michelmore noted that that closing Century was "something that we’ll be looking at, we certainly wouldn’t want to be continuing to produce at these sorts of prices for any length of time." Zinifex’s total costs of producing a pound of zinc at Century are believed to be above US$0.80 -- well above the current Zinc spot price of US$0.52. The more Oz produces at Century, the more money it loses.