OTCPK:NNDIF - Post by User
Post by
galvanizedon Aug 05, 2022 12:45am
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Post# 34873204
Zinc at 1.61 and a Q3 revenue estimate....
Zinc at 1.61 and a Q3 revenue estimate....The new improved NIF plant capacity should be between 70,000 and 72,500 tonnes per quarter, so, ignoring the upcoming need for a maintenance shutdown, lets just do thel math using the smelter;s revenue model. the numbers I present are just per quarter:
Zinc Free Metal: 70000 x 2204 * 1.61 * (.972-.85)=30.3M revenue.
Then of course there is the metal premium... this one has the potential to really move the needle given the shortage of zinc metal on the atlantic side of the world. In Q2 the spread between the realized zinc price and the LME average price was $0.13 so let's just use that: so 70000* 2204 * .013 = 20M
And then there is the treatment charge: 70,000 tonnes zinc times 2 tonnes of concentrate per tonne of zinc * $235 = 32.9M revenue.
And then, Sulfuric Acid,.. Well the netback was 110 per tonne last quarter, which is sky high in the history of the company... So normally one would expect to make 1 tonne of acid for every one tonne of zinc conentrate, but NIF seems to be underrunning that by a wide margin meaning they happen to be processing a lot of low sulfur concentrate feed..
So therefore my estimate for q3 sulfuric acid netback is 70000 x 2 * 75% * 110 [er tonne = 11.5M
And then last and least, copper cake. So first of all what is this copper cake stuff? Is it like carrot cake? Well no, copper cake is an almost pure copper alloy with a few impurities included, and for some applications it is preferred, since it is more corrosian resistant to pure copper
So anyway my method of calculating the copper cake revenue is 650 tonnes x 2204 * 3.50 per lb LME copper price * 75% netback = 3.7M
So adding it all up:
Free Metal: 30.3M
Treatment charges 32.9M
Metal Premium: 20M
sulfuric Acid netback: 11.5M
copper cake: 3.7M.
... i come to 95.4M of revenue per quarter per the smelter's revenue model....
So it looks to me like we are now enjoying the best business conditions, that this business has ever experienced in it's entire history....