Fastmarkets MB

mce-anchor Seems to be an uninformed bit of journalism by Metal Bulletin (Julian Luck)

Facts:
   - Initial commissioning concentrate was always going to be outside specification with elevated lead
   - In flotation, lead floats first, followed by zinc, so lead will always be in the concentrate
   - As the plant ramps up, zinc recovery will double, as per their published profile, so the lead content gets diluted down by the increased zinc recovery to concentrate.  This trend is occurring.
   - The first concentrate shipment was always going to be outside specification so was not offered to the offtake partners but sold to a Chinese smelter that wants lead and zinc as they can recovery both.
   - This concentrate is in strong demand and is readily saleable as evidenced by the $27mn cash pre-payment already received for concentrate in the Karumba shed awaiting shipment.
    - NCZ’s ramp up is going very well and is better than any major ramp up we have observed.
    - NCZ is in the first half of the first quarter of production and is already selling concentrate

The market has stressed about:
o Hydraulic mining working – this is already at nameplate and performing better than design
o Zinc recovery – this is on target
o The pipe line to Karumba – this is working well
o Carbon in the concentrate – this has not been an issue
o Silica in the concentrate – this has not been an issue
o NOW – lead in the concentrate – this is to plan and is absolutely saleable.

I'm relaxed, they've ticked more boxes than the naysayers can question, in in the first 6 weeks of production!