There’s a lot of mineralisation at Kempfield…..but it’s silver-lead-zinc. Those are low margin, low playability metals. Smelters control the economics because there’s an abundance of concentrate supply. Smelting costs for zinc are high and demand for lead is low. Concentrate transport costs are high. Revenue per tonne mined is low. I’d be surprised if a development looked very attractive. It may have low to modest returns, but that’s not enough in my view to commit funds at this time.
I’m only in ARD for Copperhead and I’m very bullish on the metal and the geology. I hope they don’t spend any more money on Kempfield and just concentrate on Copperhead.
ARD Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
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