New Century Resources : Zinc Concentrate Benchmark Treatment Charge Set at US$159/t

ASX / MEDIA ANNOUNCEMENT	ASX: NCZ
	09 April 2021

2021 Zinc Concentrate Benchmark Treatment Charge Set

at US$159/t

Highlights:

• The 2021 annual zinc concentrate benchmark treatment charge (TC) has been set at US$159/t, a 47% reduction from the 2020 benchmark of US$299.75/t
• TCs represented ~30% of New Century's C1 cost base in 2020, with the reduction to provide significant economic tailwinds for the operations in 2021
• Anticipated reduction in C1 costs of ~US$0.14/lb as a result of the TC drop1
• Zinc market tightness continues to drive strong price fundamentals (current zinc price US$1.29lb / US$2,850/t), resulting from prolonged covid-19 related supply interruptions against strong metal demand in China

New Century Resources Limited (NCZ, New Century or the Company) (ASX:NCZ) is pleased to report that the annual zinc concentrate benchmark treatment charge (TC) has been set at US$159/t for 2021, representing a 47% drop from the 2020 benchmark TC of US$299.75/t.

The zinc concentrate benchmark TC is negotiated annually between Teck Resources Limited and Korea Zinc Co. Ltd and traditionally forms the basis for pricing of zinc concentrate smelting contracts between other miners and smelters globally.

In 2021, approximately 85% of Century zinc concentrate shipments are anticipated to occur against contracts linked to the annual benchmark TC of US$159/t (with Century contracts averaging a moderate discount to the benchmark TC due to concentrate supply scale and quality). The remaining product is anticipated to ship against the variable spot TC (currently at ~US$70/t).

The reduction in benchmark TC has significant positive economic implications for New Century, with TCs representing ~30% of the C1 cost base in 2020 (the Company's largest single cost).

The drop in TCs is anticipated to reduce C1 costs by ~US$0.14/lb (payable metal)1. This in turn delivers a material operational cashflow increase for the Company, given its existing globally significant production rate (December 2020 quarter: 59,400,000 payable lbs production) and plans for production expansion in 2021.

The 2021 benchmark TC is retrospectively applied from 1st January 2021, resulting in New Century receiving back-payment for shipments issued at higher TCs during the March 2021 quarter.

• Assumes an average realised TC for 2021 of US$159/t against New Century's 2020 weighted average realised TC of ~US$280/t

New Century Resources Ltd

Office Level 4, 360 Collins Street, Melbourne VIC 3000

Phone [phone]

Email [e-mail]

Website www.newcenturyresources.com

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This announcement is approved for release by the Board of New Century Resources.

For further information, please contact:
New Century Resources	Media enquiries
Patrick Walta	Shane Goodwin
Managing Director	Head of Corporate Affairs
P: [phone]	P: [phone]
E: [e-mail]	E: [e-mail]

Disclaimer

This release has been prepared by New Century. The material contained in this release is for information purposes only. This release is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company and neither this release nor anything contained in it shall form the basis of any contract or commitment.

This release contains forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and the sale of zinc. Forward-looking statements include those containing such words as anticipate, estimates, forecasts, indicative, should, will, would, expects, plans or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, and which could cause actual results or trends to differ materially from those expressed in this release. Actual results may vary from the information in this release. The Company does not make, and this release should not be relied upon as, any representation or warranty as to the accuracy, or reasonableness, of such statements or assumptions. Investors are cautioned not to place undue reliance on such statements.

This release has been prepared by the Company based on information available to it, including information from third parties, and has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or opinions contained in this release.

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