RE:Boliden investing 700M euro in zinc smelter. WOW!!
galvanized wrote:
https://codeitworldwide.com/news/expansion-of-boliden-odda-and-more-zinc-with-world-leading-climate-performance/
So this is really extraordinary news. The zinc smelter outlook is so improved that boliden is willing to invest 700M euro in a zinc smelter upgrade. They enjoy exactly the same advantage NIF has, which is access to cheap hydro electric power. So the 700M where their mouth is says zinc treatment charges are going up.
Seeing a 700m euros investment as an indicator that TC will get better is logical but it's seems evident that it's will get better with less mines employes shortgage from covid. A thing that they probably didn't see is they are on sea level, there is a hill up to 30 meters but many key installation are below 3 meters and will be highly affected in next 10-20 years... NIF is at 50 meter. For long term, NIF is a better investment, the moment the Glencore issue is fixed.
Insteresting fact :
In 2020, Odda did 382 000 tonnes of Zinc concentrate, produced 192 000 tonnes of Zinc and 127 000 tonnes of Sulphuric acid for 202 753 777 USD of gross revenues, and 63 745 880 USD final profit.
In 2020, NIF did 517 431 tonnes of Zinc concentrate, produced 268 387 tonnes of Zinc and 385 778 tons of Sulphuric acid for 666 505 000 USD of gross revenues and a loss of 21 321 000 USD.
Data for Odda : https://vp217.alertir.com/afw/files/press/boliden/202103096361-1.pdf
For NIF is sedar...
Zinc on concentrate = 50.26 % VS 51.85 %
Sulphuric acid on concentrate = 33.25 % VS 74,56 %
Average zinc price at Odda was 2 250 USD per tonnes, NIF was 2424 USD so all good again.
Average sulphuric acid price at Odda was arround 30 USD per tonnes, NIF was 46 USD so all good again.
The problem seems to only sit in spending for Noranda, not in profit.
Noranda for buying material alone (The supply contract i did report to the Competition Bureau a few weeks back) is 72.35 % of the Gross revenues. At odda, the total cost before depreciations is 58.18 %.
Thats 14.17 % difference and we didn't count all other cost for Noranda. Otherwise, that 58.18 % for Odda is ALL COST except depreciations and that 72.35 % for Noranda is ONLY Material cost.
For both ALL COST except depreciations it's would be 100.6 % for NIF and 58.18 % for Odda, Glencore probably costing us 266 602 000 USD or 40 % of the gross revenus by year.
If i do apply it in TOTAL to our concentrate, that represent a price 224 % too high for our concentrate. A price of 100 % would probably cost us 215 641 000 USD per year or 416.75 USD per tonnes.
If you want to know, the reference number at the Competition Bureau is R718578 .