Below demonstrates the sensitivity of the project’s economics at...

Below demonstrates the sensitivity of the project’s economics at a range of zinc prices. Every US$100/t increase/decrease in the zinc price adds or reduces by approximately US$100M to the pre-tax NPV and every reduction reduces the pre-tax NPV. The financial model applies annual indexing to all cost and prices using a CPI rate of 2.5%.

Zinc Price sensitivity -  Zinc price US$2,904/t   - Zinc price US$3,044/t  -  Zinc price US$3,144/t
NPV before tax    -  US $940m - US$1,043mil    -  US$1,146mil
IRR    -   34% - 36%   -   38%
NPAT    -   US$1,687mil - US$1,836mil    -   US$1,985mil

US$/tonne for 12 January 2018​

LME ZINC OFFICIAL PRICES, US$ PER TONNE

	Contract	Bid (US$ / Tonne)	Offer (US$ / Tonne)
1	Cash	3418.00	3420.00
2	3-months	3386.00	3387.00
3	Dec 1	3123.00	3128.00

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