Still way undervalued relative to zinc price, page-15

Interesting read and quite conservative IMO, especially on the zinc price scenario, though understand they can't extrapolate from what is currently underway. They refer to it but do not engage in the rising spot price other than "We estimate every 1 cent that zinc rises above US$1/lb adds 0.7-1.5cps to our valuation." That means that today their valuation would be 18c + say 8c = 26c and that in 12 months = 36c.

If we apply say $US1.20 per pound for 12 months then that price target would be (using 1c as convenient mid-point) 26c + 20c = 46c. People can do the maths as zinc price climbs above $1.20 and similarly we have the resource factor which we can realistically anticipate will increase.

Still haven't got my arms around their NPV calculations which again appear conservative - they have rightfully assumed low level inputs across the board.

Whichever way you look at it, safe to say that if the project gets up with little hassle, the 10c price today is still way undervalued. Once the market gets over the current graphite obsession, and the zinc price catches up with the continuing fall in LME inventories, IBG share price should start heading towards their base case valuation.

Glad to be BIG on IBG