Fastmarkets MB, page-99

First 99 Last

Share
Profile

Follow
Berger978456

3,555 Posts.

374

24/10/18

14:21

Post #: 36242278
Share

Originally posted by BayesSigma: ↑

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.

Expand

Tailing's processing is not new. And the company we've hired to do the processing of the tailings is also not new to mining tailings. This stuff is all addressed in the DFS.

NCZ Price at posting: 65.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

EQR

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

IMD

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Bitcoin: Current State of Play & Where to Next | Swyftx

VTM

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Emerald & Azure score Digger & Dealer awards

WNX

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

ARD

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

SVL

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

M2R

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

There are more pages in this discussion • 23 more messages in this thread...

First 99 Last

Add NCZ (ASX) to my watchlist

Fastmarkets MB, page-99

Top Stories

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Bitcoin: Current State of Play & Where to Next | Swyftx

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Emerald & Azure score Digger & Dealer awards

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

Featured News