End of week pricing update, this time inclusive of current discounted AUD exchange rates:
Currently lead is priced at $2125US$/t, or $A3287/t. Averaged DFS assumptions at a 0.70c exchange rate = $A3228/t. Due to the exchange rate currently being 7% better than DFS assumptions, lead is on-par with DFS expectations. As always, the project is more leveraged in favour of lead. A further increase in lead price or the depreciation in the AUD/USD rate would start making the project quite attractive. However, there doesn't appear to be any catalyst for upwards movement in lead in the near future. As the primary commodity, further appreciation in Pb would be very beneficial while exchange rates are low.
Silver is sitting at $29.50/oz after this weeks rally, or $A45.5/oz. Averaged DFS price assumptions for Ag at a 0.7 exchange rate = $A36.6/oz. This represents a 20% premium on the DFS assumptions. As the project isn't as leveraged to silver, this only represents +A70m to NPV. For comparison, if Pb hits a 20% appreciation value, this would equate to a significant +A220m to NPV.
Points to silver if it can sustain the current prices, however at present the exchange rate is carrying the project. It is the most sensitive metric for the project, and it needs to stay down while Pb tries to recover. The recent sticky inflation data from the US will work in BML's favour.
