Contained Metal

I found this slide interesting - ZMI has a resource JORC of 566,000 tonnes of contained metal.

If use assume that only 25% of that got converted to reserves and mined that would still yield 142,000 tonnes of zinc.

If you assume that ZMI can mine and process at the same costs as RVR which is 73 USD cents per pound then the margin would be around 77USD cents per pound (1.50 less  .73) or circa 1 AUD.

So potential cashflow could be around 141,000 x 2200 x 1 AUD = 310 million dollars. Assume 50 million for upfront capex (there is an option over a mill for $6 million) and the current resource could be worth around AUD250 million.

You can rework my assumptions whichever way you like but it seems this stock is very cheap. On top of those calcs is the fact the latest drilling results aren't included in the current resource plus there is further results to come. This includes Celtic Tiger will could be a whole new zone.

The stock price should be well north of here given the resource ZMI has. Here's hoping we'll see that happen in 2018.

IMHO/GLTA