The scoping study relies on some heroic metal price assumption....

The scoping study relies on some heroic metal price assumption. It assumes Zn will be priced at a 15-20% premium to avg price over recent weeks. Opex is costed $1.12 per/oz (Zn eq) despite Zn selling $1.04 as recently as 19 Sep

The sensitivity analysis notes price of zinc as the single most important variable effecting the bottom line. If one uses the current price of zinc, it shaves tens of millions from the states NPV.

On the other hand, if one assumes (not unreasonably imo) the price of zinc may fall back to where it sat just a few weeks ago, azure actually loses money for each ounce it pulls from the ground

The whole thing is very marginal and borderline. And Tony now confirms he hopes to raise $28m in equity. That’s 140% of current MC. What discount will he offer to lure in nervous investors in the current ‘risk-off’ macro climate???

This project isn’t de-risked. The business case here is one for metals bulls. Considering macro risks (trade wars, China slowdown, spiking DXY) there’s a real chance metals prices will fall to the point the project is not viable, or at least Op will become far more marginal than the study suggests