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plough

33,763 Posts.

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20/09/18

11:26

Post #: 35722343
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Originally posted by city1866 ↑

The big money is to be made in exploration. The tailings operation can cover the following

- remediation of the old mine site
- reactivation and maintenance of the sunk cost plant and equipment
- a strong exploration program
- a steady dividend. Maybe not big, but enough to keep shareholders happy

IF shareholders get over the next 6 years, $1 worth of dividends and tax credits, then effectively you get a free ride on an exploration program near one of the great mines of Australia. Where do you find new deposits? Near other mines

So if they explore and find a good deposit that has a mine life of 7 years?, then in 6 years time you have a mine of 9-11% Zn x 7 years, rather than just a tailings mine of 3% Zn x 0 years

If the company had only bought the tailings, this company would be so-so, but the plant and equipment means they could one day, use 1 processing facility for a new mine and the second to process other companies ore on a toll basis (can they use these facilities for copper? Or only lead, zinc and silver?)

Either way, the leverage to monetise new deposits means they have bought a seat at the table of opportunity. Probably the best comparison is Kambalda, re: nickel processing

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You are assuming they will get the recoveries they predict

"Probably the best comparison is Kambalda, re: nickel processing"
Could you please substantiate that assertion .

NCZ Price at posting: $1.05 Sentiment: None Disclosure: Not Held
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