Top of the league - But why? A review of zinc smelter cost leagues
The profitability of a zinc smelter is measured in terms of its cash margin. The actual position of a smelter in a cash margin league is driven by 2 factors; the total revenue it generates from processing raw materials and the cash conversion cost of doing so. For a smelter to move to a higher cash margin position it is clear that it must maximise total revenue and/or reduce cash conversion cost.
Table of contents
Total revenue - dominated by treatment charge and bonus metal revenues