Ann: Quarterly Activities Report, page-3

Spot on on the TCs - they are still around $270-285/mt. Drop of TC’s to the 10 year average in 6-12 months is not realistic.
That is not to say there may not be a small reduction in TC but what they don’t mention is that if TCs are decreasing due to Chinese smelters consuming more zinc concentrates, they are producing more zinc metal. More zinc metal usually means lower zinc prices. SHFE stocks have already increased from 20k in Jan to around 75k now.

Still don’t understand how by expanding their production with Stage 2 this will result in higher spot zinc prices and apparently lower TCs? Makes perfect sense.

Also from their plan of being cashflow positive to being -$16M this qtr. Also higher operating cash outflows next quarter. Any more hitches in the operations and get ready for a very big cap raise so they may still need Tolga + CS/Pattos.

Have to give them credit to have a call tomorrow though.