interesting view point12 Dec 2019 15:48
How Laurence looks at the company valuation:
Peer resource looking at both grade and size
Concentrate grades
Con market and whats going on there
Silver component/silver tracking gold and next 12 months- see recent articles online
previous experience in zn and margin competitive projects- margin not size
Trends in zn mining and zn smelter at present
Lead market and the trend for the next 12 months which is interesting- look online
Issues around biproducts/ purity and penalties which are increasingly important in terms of smelter intake (fingers crossed)
Political risk for mines and supply transparency
Npv, yes, but really the low capex and how we optimise opex going forward
My overarching view is that low capex projects in secure regions with good infrastructure and robust margins should be the preferred destination for development. Low deterious elements/by products and good con grade are important as prc smelter efficiency is sort and polluting low efficient operations shut down.