re: Ann: Positive PFS for Admiral Bay Lead-Zi...
Be interested to hear what others think. The NPV is $160m for 10% of assessed region, how is this supposed to be interpreted in context of entire operation? I'm sure it's not as simple as extrapolating to an NPV of $1.6bn should remainder of deposit produce similar drilling results, since wouldn't the NPV be factoring in development costs? What is meant by 'Net present Value at 8% discount of $159.8m' towards end of report?
"IRR of 12% - pretty low considering the cost of capital."
What would be considered a high IRR? Capital payback within four years sounds up there with quality projects like Prominent Hill. I've not a lot of experience interpreting feasility studies though..
Forecast zinc price of $1.20/lb doesn't sound like a conservative estimate though (not unrealistic either), I'm more interested in where production costs lie relative to other projects, as more comfortable holding producers at bottom of cost curve.
KZL Price at posting:
55.0¢ Sentiment: None Disclosure: Held
