The main question: If Perkoa would start production today, would...

The main question: If Perkoa would start production today, would it then be a low, medium or high cost producer ? In my view, Perkoa would turn out to be a medium to high cost producer (probably something in between). Only the management can provide us with the according numbers and this estimates are crucial to a) answer the question above and b) to finance the completion of Perkoa mine.

The calculation of a possible SP after start production is not so difficult then. Let's calculate with a mine life of 10 years and an annual production of 90'000 t. Furthermore we may assume for example production costs of 75 c/lb and a zinc price of 1 $/lb (roughly $ 1840 respectively $ 2150 per ton). This would mean that they would make around $540 profit per ton of zinc x 90000 = 48 m profit per year. You can then calculate with a PE of 3 or 5 or whatever and then the SP should raise to something like 1.30 to 2.20.

Obviously these are only assumptions. Nothing else. A higher zinc price or a higher/lower output or lower/higher productioncosts would substantially affect this thoughts.

But I fully agree with your comment. At the moment with $ 32 m you can buy 18 m of cash, an almost completed zinc mine, a possible low cost gold production around the corner (Burkina Faso/Perkoa) and on top a free lottery ticket regarding Mumbwa...provided by on of the largerst companys in the world (BHP...). Somehow it looks a little bit like a bargain.....for sure if zinc price rises further or if it would turn out that production costs are lower then expected! I guess that Northsound has made similar thoughts before buying more shares.