@ shakeypremis, your calculated value per tonne is the gross value, ignoring metallurgical losses, payability deductions by offtakers and off-mine charges such treatment and refining charges, transport, shipping and insurance. A better way to compare between operations is to calculate in in-situ value after accounting for the above losses and expenses. I get to an in-situ value of US$167/t, which is excellent, partially explained because the transport and shipping cost will relatively low and the treatment charges favourable for such clean concentrates. If Alta Zinc would make use of ore sorting underground as per their test work results, the value per tonne milled would be around US$290/t. Given the relatively low cost of mining for such a sub-horizontal deposit and easy metallurgy, the prospective cash margin per tonne mined will be very good, estimated by me at US$160/t milled.
AZI Price at posting:
8.1¢ Sentiment: Buy Disclosure: Held
