Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Australian base metal company New Century Resources is optimistic of zinc’s demand given China’s strong growth post COVID-19 and with rest of the world too recovering amid major stimulus packages, focused on infrastructure, announced in USA and Europe.


The company expects a further increase in raw material demand owing to the planned growth in infrastructure in 2021 and strong consumption from China, which represents 50pc of global zinc consumption. 


New Century Resources’ zinc production in December quarter was up 15pc to 32,350mt from the prior year but dipped 4pc from the previous quarter. Production is down on quarterly basis due to reduced operating hours and hindrances in operations caused by weather. Significant rains and severe power supply shortages hit production levels in December quarter. 


The company reported quarterly average of approximately 9.5mt per annum at 45pc recovery rate which also rose to around 47-51pc during steady state operations touching the highest at 53pc. Peak daily production in Q3 reached to 477mt of zinc. Operating costs were higher on the back of wet weather management which includes mainly costs associated with dewatering. 


New Century reported a growth of 70pc in December quarter with adjusted EBITDA at AUD22.4mn compared to previous quarter. 

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