Article relatively positive apart from performance of the share price over last 6 months. For what it’s worth my view is:
1. Market reaction to not hitting all of the PFS assumptions has been brutal. Although not uncommon for startups and in mining. Would have the market reaction been less aggressive if the PFS was less optimistic, or one could argue more realistic? Possibly, a learning here I suspect for the Directors of NCZ.
2. Progress made throughout startup to production has still been impressive and in my mind they are absolutely moving in the right direction.
3. Capability of the NCZ team and subsequent hiring has been reactive as opposed to proactive. However as they have understood to challenges and bottlenecks they have recognised and increased capability.
4. Zinc price and processing costs in China have exceeded expectations, and there is no doubt this has impacted cash flow and timeline to generating cash to fund next phase. They are still calling out that a capital raise will NOT be required, but definitely behind their PFS timeline to fund the next phase.
5. Zinc reserves and USD exchange rate should be supporting right now for the exchange rate and impact on zinc pricing in the future.
6. Trade tensions - can’t control but has been a headwind.
7. Directors - not been a fan thus far in terms of how it changed from monthly updates to less regular at the same time they experienced challenges. My view is always best to be transparent and don’t let the market speculate. Also thought that some of the share awards were over generous, I am all for rewarding success but there is a fine line between greed and being paid well and what is deserved.
overall I have no idea what will happen to the share price over the short term, but all things considered I am definitely a hold, and for future growth if I had available funds I would buy more.
