I've had a crack of trying to quantify the increase in...

I've had a crack of trying to quantify the increase in cash-flows as a result of the rising zinc prices - any feedback on my assumptions is welcome.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7
0	Metal	Tonnes		Price as per page 23 of scoping study	Current price/lb	Increase in Margin/lb	Increase in Cashflow
1	zinc	21400		1.23	1.45	0.22	10,314,800
2	copper	3600		3.15	3.2	0.05	388,800
3	lead	5000		1.01	1.13	0.12	1,300,000
4	gold	2000		1,262	1282	20.00	40,000
5	silver	370000		19.97	17.15	(2.82)	(1,043,400)
6							11,000,200
7				Convert to USD @ .785			14,012,994

   
So assuming no increase in output, cashflow should increase from around 25 million per year to around 40 million.

The scoping study assumes 300k  tonnes I think to go into the mill - if it were to increase by a third then zinc output should increase by 21400 x .33 = 7,062 tonnes assuming consistent grade.

C3 costs are 73 cents USD and C1 costs are 18 cents USD - if we assume additional tonnes processed at half the cost between C1 and C3 this would give a marginal cost of 45 cents per pound.  This means the margin on additional tonnes is around 1USD per pound i.e. current zinc price of 1.45 less .45 cent cost.

So if production were to increase by a third then cashflow would increase by 7,062 x 2200 * 1/.785 or around 19.8 million.

Long story short current prices would add another 14 million a year to cashflow, and if production were to increase by a third over the scoping study cash would increase by approx 20 million.

All up cashflow could more likely be around 25+14+20 to give circa 60 million per annum.

That makes RVR very cheap given it current mine life and market cap and shows just how valuable additional discoveries/production increases will be.

Also does anyone know what is going on with drilling re Liontown East?

GLTA/IMHO