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37,911 Posts.
828
24/04/13
06:10
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the 2007 feasibility had low OPEX (20c/lb) but very high CAPEX ($1.6b for 200ktpa output)
today, this would probably be 25 to 30c/lb opex & $2B+ CAPEX
do the numbers & at current 83c/lb zinc, the payback is very poor
200ktpa x 2204 x (83c/lb - 33c/lb) = $220m pa EBITDA x 30% tax = $154M pa before interest & depreciation
interest on $1,000 loan would be $50m pa
if the project earned $120m net profit per annum, the payback on $2B capex would be 17 years
forget the zinc
it peaked back in the day due to the ignorance of investors
even back then, it was hopeless
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