Well for example, plenty of gold miners overseas produce at a loss at times depending on the gold price. If the option is to produce at a loss or not produce at all for a giant loss, they will usually still produce.
Australian mines actually have pretty damn good costs in their feasibility studies before they proceed with building the mine in the first place. They are usually quite conservative with commodity pricing, accounting for fluctuation.
With that said, the risk you present is definitely legitimate for companies with deposits building new mines. If building the mine isn't worthwhile at the current value of the deposit, it wont be built, which might hurt the blue sky possibilities of a company like ZEN in the future. Who knows though, its a guessing game. One commodity or base metal might be over-supplied and not be driving the industry that ZEN supplies, whilst the battery metals might be booming. ZEN can supply either resource with power.
ZEN Price at posting:
$1.06 Sentiment: Buy Disclosure: Held
