DIONYSUS: here is a short summary of it. I will email you the full report on Monday. Happy reading. As i said I am going for the ride on this one.
"Company Update Century's Quick Strip † Century pre-stripping is being accelerated to address potential problems with pit wall stability identified by in-fill drilling/geotechnical modelling. † Expected cash cost over the next 3 years is A$90m in equipment and A$190m in stripping costs (36m BCM). Only ~A$75m, or 14m BCM, is actually additional stripping, with the remainder previously scheduled for 2010-13. Cost pressures (esp. fuel) have also contributed to higher costs (A$5.30/BCM v A$4/BCM at the time of the IPO).
† EAT impact more muted at ~A$35m p.a. driven by the amortization of the additional costs over the life of mine (~2016). Estimates are provisional as a finalized mine plan will not be available until late February.
† However, there is still considerable upside to EAT estimates from spot commodity prices that remain well above our 2006 forecasts - Zn US93¢ v US69¢, Pb US58¢ v US41¢ and A$ 75¢ v 79¢.
† At spot commodity prices our FY07 EAT estimate would be A$1b (PE 3.6x and FCF yield of 20%)."
ZFX Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
