In FY06 the smelters accounted for 57% of zinifex's asset base but only 27% of the profit. This will only get worse if zinc prices remain strong, becuase they will have to keep their tc's low to attract stock feed. Chances of these operations moving o/s is slim, as they need to be close to concentrate supply, which is much more expensive to ship than refined metal (because it has a large component of water in there).
ZFX
zinifex limited
