insight into profit analysis: offtake shipment

To those trying to crunch the numbers I have posted below a copy of a question I put to PW last week and his subsequent response. This may shed a bit more light on profit analysis.
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Question
As per slide 23, Aust. Zinc Briefing, why do the operating costs go up
so much for zinc valued @ 90c US lb compared to zinc valued @ $1.50 US
lb as in both instances we are still processing the same throughput
volume of tailings via the Hellyer treatment plant.

Answer
Treatment charges are a complicated formula depending on zinc price and
change year to year. Smelter charges(included in operating costs)
increase with zinc price.
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I can see where some people may be coming from because previous announcements have separated revenue and costs whereas todays announcement provides the payment figure AFTER smelter treatment terms have been deducted, therefore no need to apply costs again ($25m annualized cost includes smelting charges)

Additionally Intec still have their own 'corporate' costs which are separate to the JV, which will need to be covered before their share of JV proceeds drop through to the bottom line.

Hope this helps

Cheers
Boomer

FYI
On Monday I had a good conversation with David Zammit, in which I suggested INL make an announcement regarding payment for the first shipment at the earliest opportunity...I'm glad to see they have reacted positively to the idea as I believe it to be beneficial to leverage the achievement of such a significant milestone.