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Gold/Mining/Energy : Silver Bull Resources, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (63)	9/23/2006 3:33:48 PM
From: jackjc	Read Replies (1) \| Respond to of 5637

We have not seen anything yet of what zinc jrs could sell for as the industry expects the metal price to revert back drastically. UBS has an equilibrium price of .67, and RBC has .50 Industry has various projections showing supply meeting demand in 2008-2010 and this puts a damper on new investment. As time marches on and longer term futures prices lift as supply continues to fail to meet demand, the long term prices used in valuation will increase. The mkt is not valuing Metalling at 1.50 zinc as it has no zinc for sale for 3-4 yrs and mkt expects its zn to sell for about 60 cents/lb, which would still be very profitable for a SX-EW producer (depending on fease results, or mine plan would give a good indication as refinery costs are well defined.) This is a bet on where prices will be from 2010 til mine is mined out decades later, and on the low cost of the process which only Skorpion has at present. This is how banks have to evaluate profitability, no mine without their money paying most of the capex. Todays zn moves affect the perceptions of investors and can benefit or hurt the stock, temporarily, but my guess is much lower zinc would not inhibit the odds of making a mine.