Replies to post #33364 on Value Microcaps Junior Miners

[dr_airtime]

GORO: High Zinc Prices Keep Costs Down.

This is a dr_airtime original observation:

See slides 13 and 45. GORO has a 3.6% Zinc by-product P&P grade which contributed US$ 26M in 2016 revenue as a by-product credit help keep GORO's cash costs/AISC down. By my posts for last year I'm bullish on zinc for next couple years and so are others so this is a nice tailwind that should keep GORO's costs down. You can quickly calculate from slide 13 that based on 14,302 tonnes of zinc production GORO received US$ 1800/tonne in 2016 and prices currently around US$ 2500 tonne. Assume a similar level of production and US$ 2500 flat pricing for 2017 and there is an instant US$ 10 million increase in revenues over last year (or decrease to cash costs/AISC depending on your approach)

http://www.goldresourcecorp.com/content/grc-presentation.pdf

To come from the contrarian point of view - if GORO ever runs out of 3.6% zinc then sell as costs are going to jump materially. This probably isn't a risk but going to go email company now.

[bbotcs]

GORO: dr airtime

The truth is, the Mexican government could seize foreign assets whenever it pleases. There is always that risk.

If the price of gold were to soar, I believe the corrupt government would really sink its claws in.