RE:RE:RE:RE:RE:Annual Meeeting July 31Although you are a great source of information, you are incorrect on the relationship between Zn price and TC's. Assuming lower price means higher supply:
Mine A produced 5 units of Zn concentrate per day and pays $1/unit for Smelter B to process it.
Smelter B can process 6 units/day
Mine C opens and produces 5 units per day, but smelter B can only process, so they tell Smelter B they'll pay $1.2 to process their concentrate.
Price of Zn goes down, TC's go up.
firecracker74 wrote:
You must differentiate between AISC and all expenses. AISC includes all operating costs. It does not include G & A, interest, taxes or exploration expenses. TV has stated that with the higher treatment charges they expect AISC to be between $1.05-$1.15 this year. That means that total expenses are expected to be between $1.13-$1.23. Profits are determines using total expenses.Lower prices means lower treatment charges and lower taxes so there is hope they can keep total expenses at the lower end of this range. An important question to ask at the annual meeting would be how much will treatment charges come down due to the lower zinc price. Treatment charges are a HUGE(30%) part of TV's expenses and they are a really big deal when determining costs.