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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: Ray Hughes who wrote (1611)	1/28/1999 11:58:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 8010

<< Are you aware that Billiton's new smelter has been canned? >> That is new to me. Still I see probably more 600,000 Mt coming on stream including Savage, Townsville and the expansion of Cajamarqulla. This is from a recent report by a large commodity broker in SA, SG Group Commodities As well this report talks about 5 new zinc mine shooting concentrates, so the new smelter capacity may already be used up... Don't know as I don't have all the data to reconciliate. Their forecast is for zinc at $0.45-$051 in 1999 and $0.55+ in 2000. << At Auspex (remember I'm the Public Relations guy for Auspex)...we're already discussing terms with European smelters. Our concentrates marketing consultant projects a US$0.15/lb. cost for smelting zinc concentrates. >> This price is inline with what i have read...but there are smelters with much higher charges than that .. BTW, glad to see VEstor and Auspec will merge...Make sense. I will still own indirectly in the company via Cumberland. One factor that should also be kept in mind in this equation is that a new mine (Century) is coming on stream in late 1999 with 450,000 t/y. As well Skorpion in 2000-2001 will produce 150,000T of zinc metals (no need for smelter)... and Accha could follow in 2001-2002 with a similar amount... So it becomes very hard to be sure of future zinc prices...Although I agree with you that it has the best prospects...due mainly to current inventory levels... But we need Asia to pick up fast and strong...otherwise I am afrais with might not see $0.55 within the next 3 years. Thast is why I prefer pure silver producers. CC