Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of ASX-listed Symbol Mining fell by 8% on Tuesday despite the company’s attempts to allay shareholder fears over the volatility of the zinc price.
Symbol on Tuesday told shareholders that while the current zinc price was below the $2 800/t ‘low case’ scenario considered in the scoping study for the Macy deposit, in Nigeria, the project was still expected to demonstrate positive cash flows from its high-grade zinc product.
At the current price, the project is estimated to generate life-of-mine (LoM) revenues of A$32.45-million, compared with the A$38.9-million estimated in the ‘low case’ scoping study, and LoM earnings before interest, taxes, depreciation and amortisation of A$12.1-million, compared with the A$20.5-million estimated in the scoping study.
Symbol told shareholders on Tuesday that the company’s board was of the view that the underlying market fundamentals for base metals remained favourable, and that the company was confident in achieving a price for the Macy product within the price ranges assumed in the study.
The May scoping study estimated that Macy would require a capital spend of $3.2-million to start production, and could produce 38 100 t of shippable product and 6 950 t of mixed product over an initial mine life of 12 months.
Mining at Macy’s started in May.
Symbol shares traded at lows of 2c a share on Tuesday, up from an opening price of 2.5c a share.