remember the zinc gap, page-48

HS

great to hear from you - yes, we were ahead of time but it is happening… the Chinese have finally realised that you can't cut corners on Zn input during steel production unless you are into rust production….

As to AAR - it will happen… I posted earlier (for my own amusement really) that a SP of 38c is what Koongie Park alone could contribute based on the February 2011 report:

Based on metal prices and foreign Exchange rates current in the last month and having selected Cu @ US$9,400/t and Zn @ US$2,400/t (US$1: $A1) the project generates an Operating Surplus of A$60m, which equates to a net present value (NPV) of A$36M at a discount rate of 8% from net revenue of A$413M. The cashflow has an internal rate of return (IRR) of 31%.

We're in the money with Zn and not far off with Copper… the Zinc Supply/Demand gap is finally happening… where is the Zn price heading?



Anyway, keep an eye on this one - JJ might just surprise all of us!

EE.