Current zinc price sits at US$3810/t, higher than the recent top, US$3755/t achieved in last Oct'21 when Nyrstar decided to curtail their output due to high energy prices. I am not sure if this is due to the higher energy prices or Russian zinc exports being curtailed (4% of global supply in 2021) or both.
AMI guided a production of 31-34.5kt of zinc this financial year and has already hit 17.4kt in the H1'FY22 with a zinc price averaging at US$3086/t (FX:0.73). If zinc prices stayed buoyant above, say at US$3500/t, this would mean an additional profit of A$7.4M at the bottom range and A$9.4M at the top range. Every US$100/t higher than US$3500 contributes an additional A$2M to the bottom line.
This plus gold's recent ascent above US1900/oz is probably what's attracting some buyers today.
AMI Price at posting:
46.8¢ Sentiment: Buy Disclosure: Held
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