you're correct Reichman & I don't have my sheet at the moment to update on on current A$ rate & what prices of Zn we can break even.
Zn break even point at KP was around us$1.05/lb for ex rate of 0.89, which means that zn needs to continue its trend.
the pricinciple here is that Zn prices are predict to go ABOVE US$1.50 while pairity it what's expected of the A$ in best case scenario.
so the idea of seeing zn & cu going higher is only to prove the good outlook of their future, which was pretty much doubted by the slow recovery of USA.
there's a ratio between cu/gold that needs to be maintained (in terms of prediction of prices) for pretty much gold is driving the whole story now.
mentioning that we do have prospect gold/silver in KP so it all looks set.
cheers,
AAR Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
