Projected revenues on today’s commodity pricing;
Production=
94,809 kg silver per year
264,000 tpa Zinc metal
At today’s Zinc price of $3270 USD ton
At today’s silver price = $548 per kilo
= Zinc revenue $982,080,000M US
= silver credits $51,955,009M US
Total revenue $1,034,000,000M US
= $1.38B p/a AUD.
= $9B revenue AUD over life of mine.
I have heard this FS is very conservative, and there may be significantly lower costs once operating.
Current Free cash flow assumes on the above roughly 18% profit margin.
Spoken to some metallurgists who think it could look closer to 30% which gives a significantly higher NPV.
The real value in this stock will unfold a couple years down the track in first year full production when it starts delivering cash and dividends by the ton and additional exploration programs have been advanced.
Cheap take over target right now.
Projected revenues on today’s commodity pricing; Production=...
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