2018 Outlook, page-3

A legitimate question here:

The shareholder register has opened up with Nyrstar/Glencore diluted down to 15.3% and 6.5% respectively. This is key.

Combine this with the zinc price as high as it is and a mining license in place, it can really only come down to 3 possibilities:

A) the money is available but management don't like the conditions

B) the money is available and management are prepared to accept it

C) the money isn't available

If it is C), there is something seriously wrong e.g. resource is not real. However, indications suggest that the resource is there and that operating conditions are similar to Red Dog i.e. tough but realistic.

If it is B), management would have to make an announcement.

If it is A), e.g. Chinese were willing to fund it but they wanted control and Mr. Downes refused, with the shareholder register now open, the Chinese could buy a controlling stake on market for single digit millions. The same applies for any western participant.

I can accept that Mr. Downes hasn't been great on all measures but the market is a forward looking animal. If someone can push for change and make a buck, they will.

The $128,000 question is, so which one is it?