Wake Up Now !!!!, page-15

Beijing says they’re lowering credit risks, while S&P says they’ve increased, so they’re both right and there are some risks, but I’m gonna bet on Beijing managing it well.

Zinc fell 15% on China worries from Feb to June, then China’s growth actually increased in March quarter and was stable in June quarter. We get such a narrow news narrative and people trade on headlines like ‘China downgrade’, but S&P’s comments really weren’t that harsh.

It’s a fair concern supply will respond to the high Zn price, maybe there is enough Zn supply coming in the next few years to meet 2.5 - 3% annual demand growth. IBG will have a pile of debt to be repaid and Zn price may be lower. Our Zn eq grade 6.3% is fine, we have long mine life, and our position on the cost curve is firmly in the lower half, pretty good actually. The chances of this ending badly look pretty low.