Transformational RTO15 Oct 2017 13:48
Metal Pricing - Zinc, Lead and Copper spot pricing has continued to strengthen markedly during the last month, resulting in a further lift in average prices for 2017.
Zinc
Averaged $0.95/lb in 2016
Averaging �1.27/lb to date in 2017 (33.6% up, from 32.0% up in Sept)
Is currently trading at $1.50/lb (57.8% above 2016 average and 18.1% above 2017 average)
Lead
Averaged $0.85/lb in 2016
Averaging $1.04/lb to date in 2017 (22.3% up, from 20.1% up in Sept)
Is currently trading at $1.14/lb (34.7% above 2016 average and 10.1% above 2017 average)
Copper
Averaged $2.20/lb in 2016
Averaging $2.75/lb to date in 2017 (25.0% up, from 23.6% up in Sept)
Is currently trading at $3.13/lb(42.2% above 2016 average and 13.8% above 2017 average)
All three metals to date in H2/2017 are continuing to average significantly higher prices than in H/1.
Current spot prices relative to H1/2017 average prices are:
12.2% higher for Lead,
20.3% higher for Copper
23.1% higher for Zinc
EBITDA
2016 - CAML $39m + Lynx $30m = $69m
2017 - H/1 CAML $24m + Lynx $34m = �58m
If 2017 Q4 forecast production is achieved then, barring a dramatic collapse in metal pricing over the next 10 weeks, 2017 EBITDA for CAML and Lynx combined may well top $120m in 2017 - equivalent to a 74% increase in EBITDA over 2016 for the combined operation.
Source: Kitco and CAML 2017 Interims and Acquisition Presentation.