Burmese zinc - what do we think?, page-2

also, if i read it right, this company wants to buy 60% of a zinc refinery for US$43M, with current capacity of 10,000tpa, upgradable to 18,000tpa

at the current zinc price:

1. 10ktpa would earn US$15.5 in revenue for 60% share

2. 18ktpa would earn US$27.8M in revenue for 60% share

3. at 20 cent/lb opex and 35% tax, deprec, etc, this is $8M and $15M NPAT pa respectively, for $43M to $60M investment, maybe 3.5x EBITDA or 5.5x net profit

4. at 35 cent/lb opex and 35% tax, deprec, etc, this is $7M and $13M NPAT pa respectively, for $43M to $60M investment, maybe 4x EBITDA or 6x net profit