michelmore still persisting with century, page-36

rob

"1 Is the lead produded treaded as a credit in the C1 costs?"

as far as I know, which is not a lot it is. eg golden grove zinc cost about 30c due to credits
apparently century doesn't have many credits so the cost of production is high.

"2 Is the smelting chargers inclueded in the C1 costs?"

here is how it is calculated...

Michelmore says
" Take the prices of copper and zinc, which have dropped say 60 per cent and 40 per cent through that period from September into October / November. When we shipped material concentrate, this applies to our concentrate where it goes to a smelter, it takes up to a month to get there on a ship, the smelter then blends it and treats it and then sells the product into the market or in a position to sell it. So the contract terms are typically something like two months after month of arrival. So, what happens is that when we put it on the ship and it becomes effectively the property of the smelter, we get paid a provisional price which is 90 per cent of the spot price at the time and then when you get to two months after month of arrival, they pay us the other 10 per cent.

Now, if the price is flat, you get 10 per cent more. If the price has risen, you actually get an adjustment upwards. In the case of shipments that we’d made in July, August, September, by the time they got into the October, or you know the September shipments have arrived and we pay the final price at the November, start of December, then you will find that say you got paid 77 cents or 75 cents in August or September and then in November we get 53 cents for it. So instead of getting the 10 per cent, we end up actually having to pay back to the customer cash we’ve already received three months before. "