Fastmarkets MB, page-90

Unfortunately the recent decline in price has triggered my stop loss and I have had to sell a large portion of my NCZ to prevent it killing my portfolio returns. It seems at this stage the shares are behaving like a value trap - an overly optimistic outlook on production/revenue outlook based on a study (DFS). I'm confident that the company will be cash positive in time but the recent events raise uncertainly level for investors as to whether the company can consistently achieve its production targets; something the market watches carefully.

Which brings me to the questions. How will they accurately forecast their production targets when there is so much uncertainty in decades of different unpredictable layering of insitu tailings? Since they are hydro-mining, they will always be mixing a concentration of slurry that cant be measured until it is being processed. Given this, I would think locking in long term contracts for a set delivery date with a quoted delivery spec will be a nightmare...especially in the short-term without zinc inventory.

How can mining and processing costs be accurately forecast? Since they are processing variable changes in zinc per tonne (litre) of plant feed and mined; the actual cost per lb of zinc produced will be highly variable. The DFS assumes fairly linear production rates of zinc with less uncertainty. 

Hopefully they can address these concerns for investors to prevent further exodus throughout the life of the mine.