PERTH (miningweekly.com) - Zinc miner New Century Resources has flagged improved economics for its 2021 financial year as the annual zinc concentrate benchmark treatment charge (TC) reduced by 47% compared with the 2020 benchmark.
The ASX-listed miner on Friday noted that the 2021 TC has been set at $159/t, compared with the $299.75/t set in 2020.
TC’s represented around 30% of the zinc miner’s C1 cost base in 2020, with the company telling shareholders that C1 costs are now expected to drop by around $0.14/lb as a result of the TC drop.
The company noted that in 2021, some 85% of its zinc concentrate shipments are anticipated to occur against contracts linked to an annual TC of $159/t, with the remaining product anticipated to ship against a variable spot TC, which currently stands at around $70/t.
The 2021 benchmark TC will be retrospectively applied from January 1, resulting in New Century receiving back-payment for shipments issued at higher TCs during the March quarter.