Metals gaining traction, page-196

Nice close above $US1.60 per lb and what a week!



The recent Banking Feasibility Study (BFS) shows the Citronen project has a post tax cash flow of $US1.46 billion equating to an NPV (at conservative 8%) of $US 363 million, based on a zinc price of $US1.30 per pound. The project has considerable sensitivity to movements in the zinc price with every US$0.10/lb impacting NPV by approximately US$150M and post-tax free cash flow by US$360M.

So, at $1.60 NPV jumps from $US 363 mill to say $US800 mill or over $A1 billion. Not bad for a market cap of $55 mill.

Monday could be interesting and any further EXIM progress would be much appreciated!