SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: LLCF who wrote (26923)12/3/2006 10:05:35 PM
From: tyc:>  Read Replies (1) of 78405
 
Dak

With metal price curves as they were on April 14th, the feasibility study showed an IRR of ~30% based on then current prices. However, because of backwardation, futures prices were not so generous. Based on futures prices that would be used for hedging, the project could not be financed. And the institutions just dumped it.... this destroyed its credibility.

Now, however, zinc futures prices are as high as spot prices were then, and spot prices are ~50% higher... hence my belief that futures hedging could provide for financing and the property should be very profitable. Investor confidence needs to be restored ! And I think they are still waiting for permitting.

That's my take and I shall be interested to hear what more negative voices say. Some people dumped their shares just because prices fell, without regard for its "option value">
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News