Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
The lead market, on the other hand, is unique in that over half of lead supply is derived from
secondary sources (largely from spent batteries, which consume about 80% of refined lead
production). With recycle activities effectively a closed loop, an on-going supply of lead from that
source can be expected. While primary supply will be required to make up the balance, lead mine
production is forecast to remain essentially flat over the coming few years, with lead from new
operations and/or expansions largely offset by mine closures and attrition elsewhere. Beyond
2014 however, projections indicate that lead supply – mine and secondary will not keep pace with
demand, and annual shortfalls of 50,000 to 100,000 tons are projected (see Figure 19.6).
Figure 19.6: Forecast Lead Supply Vs Demand to 2016
19.2.2 Metal Price Review and Outlook
The dramatic improvement in both zinc and lead prices since the late 1990s/early 2000s can be
largely attributed to improved market sentiment associated with the onset of the commodities
‘super-cycle’. With the base metals complex in large part led by copper, where improved supply
demand fundamentals driven as much by underinvestment in new mine capacity as they were by
favorable global economic conditions which invigorated demand, zinc prices rose five fold from
levels below USD 880/mt (USD 0.40/lb) in the early part of the decade to peak at around the USD
4,400/mt (USD 2.00/lb) level in late 2006 when exchange inventories dropped below 100,000
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473
Page 210