Good afternoon Brent, good to hear from you again, hope you have been keeping well, yes certainly Zinc warehouse levels are at a 5 year low and declining, this is all looking good for us, it an only mean a rise in prices, timing is going to be crucial here, Bill and Co need to hit the ground running on this one .......... £1Bn 8-)) just below the surface
It's no comfort to investors who have seen their investment in AYM fall to today's tiny level, but the whole of the mining sector is suffering. A few years back a major corporate investor in the company decided to sell up all its shareholdings in mining companies. We can now see what a smart move that was.
But these things move in cycles, and with investment cutbacks in so many commodities (oil, coal, iron ore...) demand must eventually outstrip supply, followed by price rises. Zinc prices are critical to AYM's future because the zinc-rich mineral is closest to the surface at Parys Mountain. The plan is: once zinc prices reach a certain level, begin mining operations and then use the revenue stream to go deeper and access the copper-rich and lead-rich pockets.
So guys, what do we know about the prospects for zinc prices? Is zinc ahead of the curve, so to speak: is there indeed a looming zinc shortage in which the few remaining miners will be able to demand silly prices? AYM's board continue to mention the anticipated world zinc shortage. This seems to be our only hope of a recovery in share price.
Look like the levels are heading for zero. Is that because they are off loading their stock? This could create a shortage then kick off a price rise. Do not know whether to ring Bill - does he have a sense of humour?
This is a very strange share. Reckon it will creep back up above 2p by end next week. Should be an RNS announcing the AGM date soon. I have noticed that other AIM sharehoders are forming action groups where shares are grouped together registered using a TR-1 form. This allows a lot of small/medium holders to control 10-20% of shares and try appoint their own director to the board. Maybe this is what is needed.
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