Mine C1 cash cost model by HC12092208539


									Introduction to the C1 cash cost model

Important Notes




For more information contact:
Introduction to the C1 cash cost model

   The purpose of this C1 cash cost model is to assist investors and analysts in understanding the composition of a
   The model has been designed to allow users to make estimates of C1 cash costs
   The model can be developed and expanded for further analysis and improved evaluation
Important Notes

   The data and calculations included in this modelling worksheet are for informational purposes only. Users should not
   rely on information in this worksheet for any purpose other than gaining a general knowledge of how to calculate a
   mining C1 cash cost. This worksheet may be changed or updated without notice. by Nyrstar and are for illustrative
   The data and assumptions used in the C1 cash cost example have been compiled
   purposes only. The data and assumptions used are not specific to mines under Nyrstar ownership or owned by other
   Wood Mackenzie Limited defines the C1 cash cost as:
   - the costs of mining, milling and concentrating, on-site administration and general expenses, property taxes, metal
   concentrate treatment charges, and freight and marketing costs less the net value of by-product credits
   For simplicity, average metal recoveries corporate overheads) of royalties
   - does not include indirect costs (such as(rather than recoveriesandmetal per concentrate) are required to be entered
   The C1 cast cost for a mine can vary period on period due to a number of factors, such as:
   - commodity prices, which impact the level of by-product credit achieved
   - mine campaigns which will target different ore areas/bodies and therefore potentially change the concentrate
   production mix
   - different shipping destinations and shipping terms which will impact freight rates
   - changes in commercial terms on the sale of concentrates
   - whether C1 cash costs are reported on a production volume or sales volume basis
For more information contact:
   Anthony Simms
   Group Manager, Investor Relations
   Tel: +41 44 745 8157, Email: anthony.simms@nyrstar.com
   Jaideep Thatai
   Senior Analyst, Investor Relations
   Tel: +41 44 745 8103, Email: jaideep.thatai@nyrstar.com
                          Mine C1 cash cost model
Commodity and commercial terms / assumptions

    Metal Prices
*   Zinc                                               USD/t                 2,000
*   Lead                                               USD/t                 2,000
*   Copper                                             USD/t                 7,500
*   Gold                                               USD/troy oz           1,500
*   Silver                                             USD/troy oz           25.00

    Average Payable Metal (after minimum deductions)
    Zinc                                               %                      75%
    Lead                                               %                      75%
    Copper                                             %                      75%
    Gold                                               %                      75%
    Silver                                             %                      75%
    Treatment Charge (TC) / Refining Charge (RC)
* Zinc                                                 % of zinc price        10%
  Lead                                                 % of lead price        10%
  Copper                                               % of copper price
  Gold                                                 USD / t oz
  Silver                                               USD / t oz             1.00

Production assumptions
  Ore Throughput                                       tonnes per day        1,500
  Operational days p.a.                                days                    340
* Ore Milled                                           t                   510,000
    Mill Head Grades
*   Zinc                                               %                    5.00%
*   Lead                                               %                    2.50%
*   Copper                                             %
*   Gold                                               g/t
*   Silver                                             g/t                   75.00
*   Zinc                                               %                    90.0%
*   Lead                                               %                    90.0%
*   Copper                                             %
*   Gold                                               %
*   Silver                                             %                    60.0%
    Metal produced
* Zinc contained in concentrate                        t                    22,950
* Lead contained in concentrate                        t                    11,475
* Copper contained in concentrate                      t                         -
* Gold                                 t oz                  -
* Silver                               t oz            737,871
    Concentrate grade
    Zinc                               %                  55%
    Lead                               %                  50%
    Copper                             %
    Concentrate tonnes
* Zinc concentrate                     dmt              41,727
* Lead concentrate                     dmt              22,950
* Copper concentrate                   dmt                   -

Cost assumptions

    Operating Cost
    Operating Cost/t ore milled        USD/dmt           75.00
    Freight Cost/t total concentrate   USD/dmt          100.00

C1 Cash Cost calculation

    C1 Cash Costs (/t payable Zn)
     Operating Cost                    USD/t payable     2,222
     TC (zinc only)                    USD/t payable       485
     Freight (all concentrates)        USD/t payable       376
*    Gross                             USD/t payable     3,083
     Lead                              USD/t payable     (733)
     Copper                            USD/t payable         -
     Gold                              USD/t payable         -
     Silver                            USD/t payable     (761)
     By-Product Credits                USD/t payable   (1,494)
*    Net                               USD/t payable     1,589
Input field
Calculated field
* Data which is reported by Nyrstar in its
Interim Management Statements and/or
Half Year and Full Year Results

t = tonnes
g / t = grammes per tonne
t oz = troy ounce
grammes to troy ounces           31.103
dmt = dry metric tonne

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