finally, something to smile about., page-12

So how much does a US1c/lb change in base metal prices for zinc and copper help over the course of FY09?

Using forecast figures inc PH for copper:
Zinc: 680,000 MT = US$14.96m ($40,986/day)
Copper: 220,000 MT = US$4.84m ($13,260/day)

Over the last 30 days, the prices have been going up:
Zinc: Low = 47.23c/lb, High = 56.06c/lb
Copper: Low = 1.2503c/lb, High = 1.4273c/lb

Based on high versus low spot prices across FY09, the additional revenue is:
Zinc: +8.83c/lb = US$132m ($361,643/day)
Copper: +17.7c/lb = US$86m ($235,615/day)

Total = US$218m ($597,260/day)

If these prices hold up or even improve, hopefully we'll see an immediate positive effect on cash burn, as OZL use provisional pricing based on spot price (90% paid now, balance paid 2-3 months later). This is what has really inceased the cash burn in December! Every cent up, regardless of the $US/$AUD movement (because most of our debt is in $US and this is a hedge against lower revenue when the conversion rate moves), helps OZL greatly.

Also, we need to sell Martabe. With the current spot price of gold very high and the need to further develop the site (approx $300m), it is worth a lot more to us by selling it for the right price (approx $250-$300m). It will help pay off the dodgy bankers and provide the extra stimulus we need to keep afloat if base metals do have a small rebound. We are a base metals company, not a gold company.