RE:“Curiouser and curiouser!” Cried AliceI think we have to accept that in these inflationary times of sharply rising energy, shipping and wage costs, along with rising TCs, that AISCs will rise as well. From speaking to the company, I know they are concentrating on trying to keep costs as low as possible to maximize the cash flow during these high zinc prices. Once the RP2 financing is announced, and the ROL project is clarified at Caribou, we will all know what this company will look like in the future.
Base metal prices are all very strong suggesting that these record zinc prices should continue for quite awhile. If so, cash flow should cover most of the RP2 costs, and the financing arrangements may only partially be needed.
The current share price makes no logical sense given current and expected mid-term cash flow. The uncertainty of the future of Perkoa, the shrinking revenue from the sale of Santander, and the problems at Caribou all shed a negative light, but when RP2 is completed, this will be a smaller but much more profitable company. GLTO.