I have a feeling they will go even lower depending on Thalanga. They need that mill to be spot on. No hiccups. Zinc at .92 USD/lb will really test their mettle. They should be able to hold their cash costs below that but development costs will be a challenge. I guess we will know after the next quarterly comes out.
Until then the price will swing with market perceptions of the effect of this corona virus on zinc prices. I expect one last big panic as WHO concedes the word pandemic and this I believe will knock zinc right back temporarily. After that provided the economic damage is not terminal the market for zinc will recover in due course.
Who knows but I am glad I have RVR and not New Century Zinc. IMO those poor bastards are going to be smashed really really hard. At least with RVR they could idle Thalanga for a while and sort out some cash flow from Hillgrove. NCZ do not have that option.
GLTAH and DYOR.
RVR Price at posting:
7.5¢ Sentiment: Hold Disclosure: Held
