AZS might be a better party to ask about the use of Zinc and...

AZS might be a better party to ask about the use of Zinc and metal prices

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The date for Zn prices used in the scoping study is July 4 2018.

The scoping study was announced on Oct 15.  

The Zinc price has fluctuated a lot during the period July to October so why not update the zinc price to reflect the real change known before finalising the study?

Maybe the text accompanying Figure 12 explains why there was no update though it isn't clear to me.

The current Zn price is a touch over $2500 per metric tonne - Infomine - or some 20% below the scoping study preferred price and has been consistently below that.  

I don't even see the Zn price at $3108 on this graph for the July 4 date??  Kitco figures used??

To me it appears the scoping study was at the -20% figure of sensitivity when it was actually released. 

That means IMO  the NPV8 headlined at $112M was already out of date.   I guess such figures will always fluctuate and some cut off date has to be used though for this study the preferred options chosen do leave some questions.   Why use relatively high Zn and metal prices being the main one.

Financiers will know what such questions mean and make decisions based on their professional understanding that us mere mortals on HC can only (?for most) begin to grasp.

Future prices are the realm of speculation that are only going to be confirmed in hindsight.  About all that can be said with some certainty is that Zn prices will be different and even that is not necessarily correct (could temporarily be at $3108) .

I do note the OPEX being lower also has a significant impact on NPV.  Another 6-12 months or more of possible open pit productions from Op Central and elsewhere would probably change the picture in a positive way. 

Scoping study accuracy is +- 35% so being funded to completion of the next level is good.