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Hey JT, I have been a massive fan of zinc for the last 3 years or so, although it has taken a long to get going & the price has finally exploded & I think its quite possible it will again reach the heights we saw back in 2006 I think it was of over $4k/ton. The main reason I have been friendly to it is due to the lack of exploration & mine development in the last 10-15 years. The collapse of Pasminco & Zinafex put paid to that & then there was Western Metals as well. We looked at trying to finance a zinc mine back in 2011 & there was no way the bank credit guys would go near it & when you dug into why, it all came down to there experience with Pasminco & I think many banks are like this in regards zinc related financing. In regards the article you posted, what's the relationship between Chinese rail & zinc? There certainly is one with copper & steel etc but zinc seems a bit tenuous to me. Is it cladding for all the additional buildings etc?
Either way it was only a matter of time before demand started to outstrip constrained supply.
The difficulty is as you saying finding the right exposure. Perilya has the old Pasminco assets. I found them pretty good to deal with but that was a few years ago. Where did the Kagara zinc/lead assets end up? I did a massive zinc/lead & copper hedge back for them back in 2005.
Venturex (VXR) is a multi metal explorer who weren't that far from looking at going into production a few years ago, before prices fell back. They had a reasonable amount of zinc.
Otherwise I'm a bit out of touch to be honest, so it would be good to hear anyone else's thoughts.
Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.
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