Ann: Quarterly Cashflow Report, page-28

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Gaz123

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04/05/19

12:13

Post #: 38408489
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Originally posted by ceh2009: ↑

Hairy Richard:

It’s mined grade x recovery x 85% (payable zinc in concentrate). Only paying 85% of the metal in concentrate is standard. The concentrate grade has to do with the concentration ratio which effects mainly what they pay the smelter to process. Smelter charges have gone up a lot since their initial presentations.

2.95% x $2,750 x 50% x 85% = $35 per ton tailings processed to pay for mining, processing, transport, overheads and make a profit.

There is no flotation plant in the world that runs for less than $12 so leave $23.

I have no idea what hydraulic mining costs so assume $5

Higher recoveries can be achieved by lower concentration but you then pay to treat and transport waste. The issue here is all to do with recovery. As the recovery goes up concentration goes down. You obviously recover 100% if concentration ration is 0.

Treatment charges are at least $200/ concentrate ton. We don’t know the ratio so we cant apply it as a per ore ton rate. Maybe it’s $20 (very bad) or $10 (bad).

Be careful of this one.

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thanks for this. It’s interesting but begs the question why the company is ramping up to five cannons given there appears to be no business case to continuing unless they think the price f zinc is going back to very high levels.

NCZ Price at posting: 75.0¢ Sentiment: Buy Disclosure: Held
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