perkoa profit estimate

These are all BTR numbers for Perkoa

13,000 tonnes of Zn concentrate expected to be loaded Sept 2013

170,000 dmt expected annual concentrate production

Concentrate grade 53%

Operating cost $USD 1,500 per payable tonne (2009 pre expansion operating costs)

Now zinc smelters typically pay for 85% of
the zinc contained in zinc concentrates (LME Zn price)


Current LME Zinc price per tonne US$1822/tonne

13000 tonnes x 0.53 = 6890 tonnes

6,890 x 0.85 = 5,856.5 payable tonnes

5,856.5 x US$1822/tonne = US$10,670,543 or AUD$11,785,614

5,856.5 x $US$1500/tonne = US$ 8,784, 750 or AUD$ 9,698,364

Profit on first shipment before interest, tax, depreciation, royalties, shipping? AUD$2,087,250

BTR share as per current equity AUD$2,087,250 x 0.29 =
$AUD 605,302

Annualised basis (based on current LME Zn price and today’s exchange rate)

170,000 tonnes x 0.53 = 90,100 tonnes

90,100 x 0.85 = 76,585 payable tonnes

76,585 x US$1822/tonne = US$139,537,870 or AUD$ 154,105,623

76,585 x US$1500/tonne = US$ 114,877,500 or AUD$ 114,877,500

Yearly profit before interest, tax, depreciation, royalties, shipping? AUD$ 39,228,123

BTR’s share as per 27.3% equity AUD$39,228,123 x 0.273 = $AUD 10,709,277

This is only about 48% more than the estimated cash out for the next quarter. Think the cash burn on exploration is too fast given the current market sentiment for commodities. Will have to wait to see if this strategy pays off. Any thoughts?

Does anyone disagree with this calculation and does anyone know how the USD$5 million special dividends from 50% of available free cash flow will work?

P.S. This is not investment advice, it is my opinion only. Do not rely on any of it. Please do your own research or seek professional advice to suit your specific investment needs before making any investment decision.