SWOT Analysis

Strengths:
1. Current Australian zinc price, lower treatment charges, 70% fixed production costs that don't increase with production expansion.
2. Current expanding production due to enhancements to plant flowsheet, including Jameson cell upgrade.
3. Skilled long term Management in place especially Patrick Walta(Managing Director) and Barry Harris(on site Manager).

Weaknesses:
1. Leveraged to the one commodity at the one production site with a tailings mineral reserve of four years mine life.
2. History of slow ramp-up in tailings operation resulting in financial/cashflow problems causing numerous dilutive
equity capital raisings.
3. Heavily reliant on a small number of customers for the bulk of sales.

Opportunities:
1. New resource in-situ development proposed that will extend mine life.
2. Prospective mineral leases held close to current operations.
3. Third party stranded mineral deposits within trucking distance of current plant.

Threats:
1. Financing of proposed in-situ development could possibly include an equity capital raising as well as debt financing.
2. China could expand its trade war and prohibit the importation of all base metal concentrates from Australia. The Company sold 202kt zinc concentrate or 74% of its production direct to Chinese smelters in FY21.
3. The prospect of a falling Australian zinc price.