Silver lining in zinc’s dark cloud

Terramin Australia shipped a further 5,800 tonnes of zinc concentrate from its Angas Zinc Mine out of South Australia's Port Adelaide on the weekend.

Terramin Australia shipped a further 5,800 tonnes of zinc concentrate from its Angas Zinc Mine out of South Australia’s Port Adelaide on the weekend.

The shipment has an estimated net value of US$2.2 million (AUD$3.4 million) based on the agreed September pricing of US79 cents (AUD$1.20) per 450 g.

The weakened Australian dollar and the drop in smelter prices have helped to offset the recent fall in zinc prices, Terramin Australia executive chairman Dr Kevin Moriarty said.

“We are also seeing a silver lining in the current economic slowdown with substantially lower consumable costs for grinding balls, mill reagents, diesel for the underground fleet and lower ocean freight rates,” he said.

Currently in the Middle East meeting with potential investors for the company’s Tala Hamza project in Algeria, Moriarty said that is important to start looking to the future.

“It is important to start laying the groundwork now, even though we expect funding will not be required for at least 12 months, late in 2009,” he said.

According to Moriarty, Tala Hamza’s projected cash cost could go down from US43c/lb (AUD66c/450 g) to US28c/lb (AUD43c/450 g) of payable zinc.

“This revision means that the project is likely to be even more viable when the pre-feasibility studies are completed next month,” he said.

Terramin Australia

08 8213 1415

info@terramin.com.au

www.terramin.com.au

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