I am feeling quietly confident. Backer with pockets for the offtake and purchase of Star Zinc, extremely good looking acquisition if the DD comes up to scratch. Zinc now being pinched on the supply side. There are some nosing around Zinc deposits and mines. Pilot plant now seems to have been upgraded. We hope to be producing soon into the new year. Very good grades at Star. Yields/recoveries from the dumps will be profitable, how much is the big question but fag packet calcs bring a smile to the face. Exploration at Kabwe to assess viable deposits. Star if acquired the same. New positions created for the build of a new BMR with a swagger in its step. My take on the overall picture - an excellent buying opportunity, even for those like me knee deep in it!
Overall trend – Lead prices rallied to $1,895 in March, dropped back to $1,626 and then rallied back to $1,882, which is around where they are now consolidating. A push above the March high would look constructive – it would confirm a base is in place and would open the way for prices to work higher. Given production cuts, mine closures and a generally robust auto market, especially in China and Europe, as well as strong growth in the industrial battery market and relatively low stocks, the fundamental outlook for lead looks sound. Prices have, however, been in no hurry to rally until recently. Lead prices have climbed 22 percent while zinc, which shares many of the same supply issues and has higher stocks, has rallied 50 percent. So we remain bullish for lead.
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