RE:RE:Zinc broke $1.30shakey:
I have the same issue that you have. I have a lot of trouble figuring out what this company actually produces and what the costs actually are. In my opinion, the "silver equivalent ounces" reporting is a confusing mess, especially considering most of the revenue is generated by metals other than silver.
I have been estimating around 45M pounds of zinc per year or 11M pounds per quarter. A $.10 change in the price of zinc results in $4.5M less revenue per year or $1.1M less revenue per quarter. With 50M shares, that is a change of $.02 per share per quarter.
My previous numbers were wrong. In my quick calculation, I think I used $14M worth of zinc per year instead of $4.5M.
I will defer to ganndolph when it comes to calculations. He is one of the best numbers guys around. I agree with ganndolph's recent post about the impact a lower zinc price will have on earnings.
My opinion is that the "natural" price for zinc is around $1.20 to balance supply with demand. Of course, the market has the final say and will swing the price up and down as it searches for the right price.
As for the dollar, I again agree with ganndolph that it is over valued, but I have thought that for a long time. However, it is competing with a lot of other flawed currencies, and foreigners seems to love the U.S. dollar.
-ALF