...chance to buy at these prices if the BOD are to release costings by the end of the month, which will show the market the true value of the company and how cheaply we can process the tailings, as Alex said..." A major cash generative business" GLA
Zinc Price Suffers as US Dollar Ascends, But Bullish Future Remains Intact May 20, 2016 @ 22:45 GMT zinc Zinc prices retreated his week, as the metal was hit by the base metals sell-off inspired by the higher US dollar. Despite this week’s price decline, the outlook on the metal remains bullish with Goldman Sachs joining the chorus of analysts this week issuing their positive projections on the metal’s future price.
Zinc, however, has a unique characteristic among its base metal counterparts: it is the only base metal that will see a price appreciation in the next year, at least according to Goldman Sachs. This week Goldman raised its price forecasts for zinc next year due to tightening supply and increased demand. The bank boosted its six and 12-month forecasts to $2,100 a metric ton from $1,700, and its three-month forecast to $2,000 from $1,800. Zinc is currently trading just below $1,870 per ton on the LME. “We view zinc as the bullish exception in the metals space, and remain very bearish on the outlook for the other base metals prices, most notably copper and aluminum, where we see very strong supply growth” in the second half, the analysts wrote. “Zinc has by far the most bullish supply-side dynamic,” commented Goldman analysts.
Goldman is not alone on its bullish expectations for zinc. Zinc miners including Glencore and Vedanta believe that the metal will see some upside, and that has the best fundamentals of the LME metals.
The reason for the differing fundamentals for zinc market is simply better demand expectations, while supply for the metal dwindles as mines become exhausted. Zinc is the most exposed base metal to Chinese infrastructure. China has increased infrastructure spending this year as a means to boost its economy. The International Lead and Zinc Study Group recently released its latest findings, which revealed world usage of refined zinc metal is projected to grow 3.5% in 2016 due mostly to a 4.5% increase from demand in China.
Agreed Nat. The sp has to start going north very soon, surely? Please let the costings figures be outstanding, I'm praying on bended knee. We've waited years for something good to happen and we really need it to happen now matey.
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