RE: MMG signs $1bn loan facility for Queensland pr Dugald River is an interesting project that to me shows how desperate China is for metals. MMG is a state owned company and is self funded by State owned banks. Total cost of project about $1.65 billion.
Additional cost to develop Dugald's 53 million measured and inferred tonnes is $1.35 billion compared to about $170 million for the 11 million measured and inferred tons at Prairee creek. MMG will get good average zinc grade of 12% and garbage lead and silver at Dugald River. Output is expected to be about 200,000 tons of zinc per year compared to 60,000 tons of zinc 12% average grade for CZN. Lead is 35,000 tons at 1.9% compared to 60,000 tons at CZN at about 12% average grade. Silver output is about 600,000 oz a year compared to 2.2 million oz at Czn.
It appears Dugald river will cost 6-8 times more than prairee creek to complete. It appears total output of quality ore will be about 220 ,000 tons per year compared to 120, 000 tons at Prairee creek. Silver production will be less than 1/3 of prairee creek.
Thats what I call a good comp for real value.