| Long-Term Price Case | $24/oz. Ag, $1.10/lb. Zn, $1.00/lb. Pb |
| Project | Prairie Creek |
| Mineral Reserves | 186,795,000 AgEq ozs. |
| Shares Outstanding | 369,700,000 |
| Market Cap | $24,030,500 |
| Average Annual Production | 10,829,166 AgEq ozs. |
| Recovery | 87% Ag, 88% Pb, 83%, Zn |
| LoM | 15 Years |
| Payable Product | 162,437,490 AgEq ozs. |
| True All-in Cost (TAIC) | $21.86/oz. |
| Gross Revenue | $3,898,499,770 |
| Smelter Deductions | ($454,000,000) |
| TCRC + Penalties | ($432,800,000) |
| Gross Income | $3,011,699,770 |
| Total Operating Cost | ($1,797,500,000) |
| Operating Profit | $1,214,199,770 |
| Income Taxes + Royalties | ($469,895,310) |
| Total Capital Costs | ($395,900,000) |
| Net Income | $348,404,460 |
| Net Profit Margin | 9% |
| Absolute Cost Structure (ACS) | 91% |
| MTQ Score | 0.1 |
| True Value | $0.94/sh. |
| True Value Discount (TVD) | 93% |
| Cash Flow Multiple | 5x |
| Annual Cash Flow | $23,174,415 |
| Future Market Cap | $115,872,075 |
| Future Market Cap Growth | 382% |
| Target | $0.31/sh. |
Notes: All Values in U.S. Dollars
NorZinc is at the high end of the Absolute Cost Structure curve and the low end of the Net Profit Margin curve. In other words, Prairie Creek is a Project that will require substantially higher Silver, Lead and Zinc prices in order to be viable.
In a raging silver bull market, we think shares could appreciate by as much as 382%, which assumes shares will trade at approximately 5x future net annual cash flows.
Fahy Capital Management is not an investor in NorZinc.