it's hexed...., page-8

Dragone64,

I know it's an unpopular view, but the stock is worth what the stock is worth. And what it's worth is what it produces. Yes there is always speculation about what it "might" produce, but speculation is just one person guessing better than another. Speculation is not real, it's a game with winners and losers. As we get closer to production the zinc price can fairly lead to share price changes, but in the interim it's all just guessing.

You have prompted me to revisit my calculations from last year. I have redone them with a Zinc price of $2200:

Perkoa production is 170k mt a year at 53% purity. That's about 90,000 mt per year. Apparently you lose 15% smeltering so that's 76.5 mt of which BTR gets 39.9% which is 30,500 mt a year. Cost of production is $1500 a tonne $2200 a ton sale price which leaves a net profit per ton of $700. So BTR's share is 30,500 tonnes per year for 10 years at $700 a ton which is $21.35 million a year. At about 110 million shares that's about 20 cents a share profit a year for 10 years. The only other cost is repaying our share of the JV loan of $30 million (about $15 million).

Now, I haven't factored in the possibility of extracting silver with the zinc and value adding that way. If anyone can poke holes in my calculations I'd like to know where they are. My reading is the current lower zinc price is short term, but even if it isn't, 20cents a share income on a 50cent share doesn't compute.

So, if you're a speculator trying to make a quick buck, I hope you're smarter than the other speculators. If you're an investor however, happy to wait and realise the TRUE value of your investment, well I can't see you being anything but happy in time. And that time will be soon