Good article on Resources Boom by Trevor Sykes in todays' AFR . One particular para on Zinc : "Long term zinc prices have historically been about 99c to $1.21 a kilogram. To justify a 20per cent return on any new project ,Credit Suisse estimates the price needs to average at least $1.76 a kilogram . This means neither mining companies nor their bankers are likely to finance new projects unless they can lock in prices of than order."
One would think that North Sound and Frank Brewer would have been pretty sure that Aim would be achieving better that the $1.76 per Kilo ( or 80c per pound )in offtakes , before they committed in such a big way. cheers
AIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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