Open pit is a bit of a challenge, at the moment I think it is...

Open pit is a bit of a challenge, at the moment I think it is only planned at 2-3 years more. But with ore grade and tonnes outperforming it is likely to be longer in my view.

Theoretically the slip will mean a reduced pit slope, so this would reduce the ultimate life further or increase strip ratio. I tend to think the latter will apply.

So I think we are still probably looking at 3-4 years but with a bigger strip ratio and higher costs. Perhaps given the greater life and much bigger material movements we will see them go to owner mining to get costs down.

Other issue is why defer the underground when it seems the limitation on production is mining rates and not processing capacity?

The are a whole lot of options for them but I guess the capex associated with near term cutbacks is a limitation but I would consider theoretically the best option would begin the underground drive in the nearer term as soon as the ultimate open pit can be defined and a permanent location can be found to start the decline.

From a valuation perspective the underground is the key driver and it is in the underground where the biggest resource upside exists too.

I also find it hard to believe the zinc isn't economic either - previously they talked about $1/lb as being important, but if you are processing the material already floating the zinc would not cost much extra.