HRR - Updated NPV calculation, page-15

Heron sailing into strengthening macro headwinds as it aims to ramp zinc production by 2022. There’s reason to believe the company has left its run too late to capitalize on peak pricing.

Speaking at the International Zinc Association conference recently Mac Bank said we’ve moved into Phase 2 of the zinc cycle... when chronic supply shortages and high prices are beginning to attract new capex into the sector

And I don’t think it’ll take as long as some may think for this additional supply to alter the market narrative.

In the same way frothy expectation preempted and frontran SPs of many ASX zn explorers/producers (although HRR seems to have been immune from these effects due to the massive equity dilution) so too imo will erosion of sentiment frontrun arrival of new supply.

As you’re prob aware, Vedanta (one of world’s largest zn miners) recently announced development of Gamsberg mine in South Africa. This alone will introduce 250-400 new kt p/a (equiv. ~4% global zn supply) in next 12m