re: Ann: Capital and Operating Cost Estimates... Sensible views...

re: Ann: Capital and Operating Cost Estimates... Sensible views from Denver and Arsenic. There seems to be a correlation between the quality of a company's projects and the number of hysterical postings on HC - the better and more serious the project and management, the fewer postings they seem to attract?

All indications point to favourable fundamentals for zinc and this project looks robust - my numbers suggest strong cashflow at 95c/lb Zn prices and even on a 5 year depreciation schedule, the free cashflow looks as though this project at NPV12 (post tax) is worth something between US$75m and $100m depending on your view of appropriate multiples.

My anxiety is that with a loss of investor interest,the eventual equity component of project financing even at 75% gearing will be highly dilutive. Such is Life, I guess. I find it puzzling that despite a strong register, there is rather little analyst or media attention to the story.