enochjust did a bit of quick calculation on zinc costs based on...

enoch

just did a bit of quick calculation on zinc costs based on this statement by Michelmore


"In Century the last declared C1 cash cost was 61 cents for the September quarter, but that was with exchange rates of 89, 84 and 80 cents for each of the three months. We’re obviously at a much lower exchange rate now and the bulk of the costs in that mine are Australian dollars, so that one its C1 cost has come down considerably. The issue at Century is really having the cash to pay for the capital. "

the breakdown would look something like this

lets say the A$0.84 to us$1 back then

It is now A$0.68

that is a fall of 19%

cash cost are in US$ and were 61c
that means that the cost of producing a lb of zinc has dropped 19%

ie they have fallen from 61c to 51c due to exchange rate changes

The price of zinc is US$0.50 and costs are 51c

It seems then that century is probably just breaking even or running a lose

Perhaps things are not as bad as they seem at century

he does say however that the "bulk" of these costs are in A$s so perhaps some are in US$