NO BRAINER!, page-25

Hi Jaydee74,

Last quarter (June) CZL sold 1446t of Zinc and 265t of Pb for a sale value of just $778,000 (average $260,000/mth).
The actual reported are 15.5% and 10.4% of the numbers in your table.

They also reported that :
. the realised price of zinc sold was $1.32/lb for the quarter and $1.26/lb ytd.
The cost of zinc produced was $1.30/lb for the quarter and $1.18/lb ytd.

I struggle with pulling all the numbers together to make better sense of the potential of the company. There reported mining costs are $102/t which isn’t way out of the ball park, but the revenue is always well short of my expectations. With the more positive indications in the presentation earlier this month, I have trended to numbers assuming only better throughput (4,500t/mth) and start getting sales values which are closer to $1.4m a quarter or a bit under $6m/year, which is well short of your $10m.

Hopefully others can help us here as I suspect neither of us is right and I certainly don’t know enough to accurately interpret what is being reported. My other fear is that the existing offtake agreement with Industrias Penoles is on very favourable terms for them and their exercising the option to purchase another year will maintain the current revenue trend.


I am holding a reasonable parcel of CZL shares but based on my current understanding am guessing the EBITDA /qtr will start to push towards the $350k/mth or around $1.4mpa. I am hoping for more but that would be a great result when compared to the last 9mths. Furthermore I am delighted to have green numbers next to CZL on my portfolio for a change, so don’t get me wrong, I am a fan of this company at the moment but don’t think we should get ahead of ourselves.