Ann: High Grade Hits in Oposura Central Zone, page-10

View attachment 1351741 Several days ago, I said Oposura was a project for metal-bulls with big risk-appetites. I want to expand on this.

Anyone reading the scoping study will immediately notice metal price assumptions shown are much higher than current prices (Zn, Pb & Ag are 15%, 21% & 11% less, respectively). Using today’s prices, NPV is half the headline figure (A$54.5M). Using prices of a few weeks ago (35%, 21% & 12% less), NPV is basically zero ($8.7M).

The project looks Ok when one assumes very high metals prices. But if using today’s price (or almost any price of past 5 years), it’s marginal. If one assumes prices of a few weeks ago, its basically break-even. Any deterioration beyond that, the project loses money.