The recent bounce may have something to do with the Zinc price which is looking good.
"Zinc prices extended gains during late Thursday trading on the LME, moving back above the $4,000 a tonne level"
My model takes the NPV of the project up by 9c for every $100/tonne increase in the Zinc price.
I accept Xray's geologists view that the project is not feasable but based on the ProMet/Michael Coulsen analysis, scaled down by the downgrade in the resource and upgraded by the movement in the Zinc price, my model is calling a NPV of the project at 212c per share, some 23.6 times more than the current share price......and although this looks good, I'm optimistic that the resource will move up a couple of million tonnes by the time the final JORC is announced in July, taking the project to 300c per share 33.33 times higher than it is currently trading.
I guess I should change my name from suntrader to the optimist or even worse....but there you go, I'm staying in on this one, even if it takes a while!!.
Seriously, DYOR!!
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