Ann: China Pit Scoping Study Finalised, page-28

Step 1: Zinc Concentrate Price
Conc. Zn Powder Price (USD/t)
LME refined Zn Price x85% recovery x % Zn grade -(Treatment Charges $160/t + [LME refined Zn price -$1,500/t] x 16%)

$2,358 x 85% x 52% - [$160 + ((2,358 - 1,500) x 16%)] = $745/t of zinc concentrate

Step 2: Post Mineral Tax Value of Zinc Concentrate Produced
994,200 tonnes of concentrate produced LOM per the scoping study
994,200 x $745/t = US$740,679,000 x 4% royalty = $711,051,840

Step 3: Production Sharing
50% x [1 –(Production Cost1/ Revenue After Mineral Tax)] =

50% x [1 –(US$152/t x 994,200 tonnes / $711,051,840)] =

50% x [1 –($151,118,400 / $711,051,840)] =

50% x [1 –(0.2125)] =

0.394%

0.394% x $711,051,840 = US$279,966,720

LOM Zinc revenue share to govt = $279,966,720

DDZX's Step 4: Government share of zinc revenue per real revenue
Real zinc revenue = 517,000 metal x 85% payable x $1.07/lb = $1,036,000,000 LOM

$279,966,720 divided by $1,036,000,000 = real govt revenue share of 27%





Lead govt share is 25%

Silver = too difficult