Hey Vector, If NCZ put in the time now to get 60% recovery, even at lower tonnage rates, it will be more affordable than when they have done the 12 MTPA expansion and find the plant needs more money spent to get 60% recovery. If they can only prove a lower recovery then at least they can re-evaluate the economics on a proven recovery and associated expanded plant design and give the market some confidence that they will deliver on their financials.
Everyone has had trouble treating Century mine ore and it’s got a history of assumed performance being better than what can be achieved, and burning a lot of shareholders money. NCZ need to demonstrate to the market that they can achieve 60% recovery (or whatever recovery they can prove) and do the expansion using a plant design that has been proven to get the design recovery.
If NCZ can’t afford the lost production to identify how to get their zinc recovery up and their expanded plant design right then they will continue to burn shareholders money on false hopes.
If NCZ could prove their assumed recovery, with the expanded design, then a major financial driver they can control would be proven. Their risk would be hugely reduced and they would be a share worth buying especially at the current share price that must be assuming the financials won’t be achieved.
NCZ Price at posting:
29.5¢ Sentiment: Hold Disclosure: Not Held
