Base Metals Division
Formerly Silvermet, Base Metals Division’s zinc recycling plant in Iskenderun, Turkey operated at 100% capacity for the majority of 2017, processing a total of 62,000 tonnes of EAFD. High plant utilization and excellent zinc prices are expected to contribute to solid earnings from this operation.
Global Atomic receives cash flow from its Turkish zinc operations through its 49% share of the following:
- Annual dividend payment based on net free cash flow. The dividend is typically declared in March and paid in Q2;
- Quarterly management fees of 3% of net revenues; and
- Sales commissions of US$20 per tonne of zinc concentrate shipped.
Mr. Roman commented “With zinc prices at record highs, we are generating very attractive returns from a well operated asset. We have the opportunity to reinvest those cash flows both in improving and expanding our Turkish zinc operations as well as moving the DASA project towards production status.”
Asset: 49% interest in a high grade zinc processing facility in Turkey
Exposure to zinc: Currently producing +30 M lbs of zinc in concentrate
Industry leading partner: Befesa Zinc S.A.U. – 51% owner; operates several zinc processing facilities throughout Europe and Asia
Positive cash flow today: Plant running at capacity with expansion to double throughput under study