Arizona test for South32 looms

SOUTH32’S hopes of filling its growth pipeline by taking over Canada’s Arizona Mining with its world-class Taylor zinc-lead-silver deposit project in the US are in danger of slip slidin’ away, writes Barry FitzGerald.

Arizona test for South32 looms Arizona test for South32 looms Arizona test for South32 looms Arizona test for South32 looms Arizona test for South32 looms

The slip slidin’ is a result of Arizona’s rampant share price, itself a response  to booming zinc and lead prices, and ongoing exploration success at Taylor confirming that it is indeed a world-class discovery, one capable of being around for generations to come.

Donald Trump is also getting in on the act way with his cut to the corporate tax rate from 35% to 21% giving Taylor an after-tax net present value boost of US$200 million.

The tax kicker was part of the recent $700 million increase to $2 billion in Taylor’s NPV calculation by Arizona. The other factors were an increase in mine life to 29 years on exploration success, and the sequencing of high grade material in the first years to deliver a rapid 1.6-year payba...