From Excelsior today at Kereport Wolfster says:
Bottom line is zinc supplies are at 5 year lows and no new deposits of size are coming online any time soon……..eventually this has to become an issue especially since supplies have been going down at a time that the global economy isn’t firing on all cylinders
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On November 10, 2019 at 7:41 am,
Excelsior says:
Agreed Wolfster, but just look at how trashed the Zinc stocks have been:
The Zinc Explorers and Developers like Tinka, Vendetta, Callinex, ZincX, Fireweed, Cantex have all huge pullbacks and ground investors into the dirt this year.
Even the best turn-around for the mid-size Zinc Producers like Trevali is barely getting noticed for paying down their debt and turning around their operations in a major way.
The smaller Zinc producer Ascendant Resources has also been completely smashed down.
The bifuracation between the supply side picture with insanely low Zinc inventories, several larger projects that came off-line, and the lack of meaningful supply coming online (due to all the developers getting stalled out), and the pricing seen in the miners is puzzling and just shows how inefficient the markets are.
Ironically, Nickel is running higher and higher on the battery metals narrative, where supply is fine, and the battery demand is not imminent or pressing. The global slow down should have pulled Nickel down with Copper and Zinc, but the narrative superceded the supply/demand picture. Ironically, the battery story did not help out Lithium this year at all.
The commodities are at an odd place right now, but have so much more room to the upside, and limited downside, that I’ll hold onto the stocks I hold, but am not in a rush to pile all-in at this point.