zn is $1.00/lb & cu is $3.00/lb!, page-9

Hi Reichman,

I get your point but what I've done is that I've already CONVERTED the cost at the pre-feasability study rate.

so Pre-feasability study cost for zn = US$0.91 when ex rate = 0.80, that means that the cost IN AUSTRALIA & IN AUSTRALIAN DOLLAR is AUD$1.14/lb.

now the AUD cost per lb doesn't change, because we pay all costs in Australia, we mine in Australia & with Australian dollar.

therefore, if we take the AUD$1.14/lb & use today's rate of 1USD = AUD0.93,then the CURRENT equivalent cost on today's rate becomes US$1.06/lb.

so whatever the exchange rate is, the zn cost per lb will always be AUD$1.14 because we pay for the cost in Australia & that figure is always fixed.

what changes is the US$ equivalent becuase we sell in US$ & profit will be calculated based on selling price.

same thing with Cu, always think of the cost as AUD$1.47/lb & get the equivalent in US$ price by using today's exch rate because both cu & zn will be mined in Australia & we have to pay all mining costs in Australia in Australian dollar.

I hope my clarifaction helps.