Calif, Kazfan nice discussion thereI would like to add few points.
- Financing is not an issue by any means. Mine life is one year, but pay back is measured in months. It is as safe as it gets for the bank.
- Timing of permits is essential. I currently anticipate mining to occur 2009 at zinc price 1.2 USD. Meaning TAM is 5 times undervalued (NPV8). My best guess about long term zinc price is 0.65 USD in current dollars (based on industry cost curve). That's a price which renders most of the Pine Point deposits unprofitable. (5-6% zinc equivalent and >60-70 USD per tonne mining costs). In valuation I would only account for higher grade deposits and with conservative zinc price, since they will not be mined anytime soon.
- Calif, you presented very interesting facts about capex (80 MUSD) and costs per tonne (60-70 USD). Could you confirm if the costs were total cash cost or operating costs? Furthermore, it would be nice to know where did you get the numbers.