My view is that they are paying closer to $300/t while they are still producing off-spec material. It also says that $0.51/lb cash cost based on feasibility study recoveries still to be achieved.
Once they produce within contractual spec they should be selling at the annual benchmark TC level which should be around 200-225/t for 2019. Worth remembering also that smelters will push for a higher escalator on price sharing and lower descalators given they are in the box seat this year - long story short this means a greater proportion of any price increase will go to smelters vs miners compared to last year
No doubt the logistics situation at Isa helped them however that should be fixed by early to mid Q2 based on current estimates and that again will cause the TC’s to go higher.
Next quarterly report will be very interesting especially on the recovery front.
NCZ Price at posting:
92.5¢ Sentiment: Hold Disclosure: Not Held
