RE:RE:RE:RE:All numbers are lower than I expectedaaaaaargh wrote:
I would have been happy with current head grades of 4-4.5%, but that's not what they reported, did they? They are sacrificing lead and silver grades so that they can mine LOWER zinc grades? I am really hoping for $2/pound zinc to get us out of this current mess...
As much as anyone I really want lower inventories in London and Shanghai to cause the long awaited squeeze that propels zinc to the moon. But that's not what's happening.
What is happening is that some combination of increased Chinese supply and decreased Chinese demand is sitting on zinc. It's been going on for six weeks.
Apparently, the Chinese economy can keep humming along at 6+% year over year growth soaking up all the available supply without necessarily driving zinc higher.
Two months ago the 220 million share dilution and this depressing market action sure wasn't part of the script.