Portex Minerals Inc STACF

This going to be...

[JoeBlo]

an interesting stock. I can't think of a precedent to realy compare it to. If I was a major zinc producer I would be very worried about what happens with this propery. Likely, the only way it will practically get developed is with long term contracts at pre determined prices for much of the production. And production has to be big. Investors do not want to sell to someone who will be mining it for 100 years. The only way a 100 year miner could cost justify buying the property is to buy if for something like 1/10 cent per pound. So, a big buyer needs to be found up front. And with whom will you negotiate such a huge contract? Really, the only player in town for that volume of zinc is the Chinese. But what if the Chinese decide to develop the property themselves? Who will the zinc producers sell to if the Chinese fill much of their market themselves? My suggestion to the zinc producers is to form a consortium asap to share the financing and development of this property, and move quickly before the Chinese decide to buy it. This would be much the the Syncrude project of the late 1970s. Remember, the Chinese are sitting on 1 Trillion in cash, and they want to diversify into hard assets.