Ann: MACQUARIE MINING FORUM INVESTOR PRESENTATION, page-10

What Pat perhaps didn’t mention is that in this situation all that excess concentrate will get converted into metal and find its way into LME warehouses which will impact the zinc price. Unless industrial demand really picks up which is highly unlikely given where we are in the economic cycle.

So yes TCs over the next 2 years may reduce to say around $200/t but the zinc price drop could be $400/t. Now how will NCZ manage that when it needs money to ramp up production to 12Mt?