Zinc prices hit their highest level in 10 years on Wednesday Canada Zinc Metals Corp. (TSX.V : CZX) - Zinc prices passed the $3,000-per-tonne mark
Please find below, for your information, excerpts from an article from Zinc Investing News dated August 16, 2017
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Canada Zinc Metals Corp.
TSX.V: CZX; Frankfurt: A0RAQJ
Zinc Investing
Zinc Stocks Jump After Prices Hit Decade High
Zinc prices passed the $3,000-per-tonne mark, supported by supply concerns, a strong demand outlook from China and a decline in warehouse inventories.
Priscila Barrera • August 16, 2017
Zinc prices hit their highest level in 10 years on Wednesday (August 16), breaking the $3,000-per-tonne mark to reach $3,111. Supply concerns, a strong demand outlook from China and a decline in warehouse inventories supported the rally.
“Improving demand sentiment has been fueled by a resurgence in Chinese economic growth. However, we continue to look to supply as the primary driver underpinning increasing zinc prices,” Cormark Securities analyst Stefan Ioannou said via email.
LME warehouse stocks are down more than 40 percent year-to-date, while SHME inventories are down 54 percent since the beginning of the year. “The lack of a sudden appearance of ‘non visible’ inventory onto the LME over the last 10 months further suggests supply tightness,” Ioannou added.
As mentioned, China has also become stricter in monitoring its domestic production of the metal. Environmental inspectors have recently targeted zinc mines in Sichuan province, restricting or stopping some production, according to Chinese consultancy Shanghai Metals Market.
“There is still a possibility for a further rise in zinc prices,” analysts at the firm said.
In a recent interview, John Kaiser of Kaiser Research spoke further about how zinc prices could soar as a result of China’s environmental awakening. Similar comments [came from] from Hard Rock Analyst editor Eric Coffin.
As a result of zinc’s strong demand outlook and shrinking supply, the International Lead and Zinc Study Group is forecasting a zinc deficit of 226,000 tonnes in 2017. Analysts at Standard Chartered (LSE:STAN) expect a global deficit of 135,000 tonnes of zinc concentrate this year, and a 222,000-tonne deficit for refined metal.
Many analysts continue to be bullish on zinc-focused companies for the rest of the year.
About Canada Zinc Metals Corp. (TSX.V : CZX ; Frankfurt: A0RAQJ )
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in the Kechika Trough, a world class mineral belt, which hosts in excess of 80 million tonnes of base metal resources.
Canada Zinc Metals owns a total of 79,780 hectares in 230 mineral claims which extend northwestward from the Akie property for a distance of 140 km.
The Company has outlined a NI 43-101 compliant mineral resource at its flagship Akie property, including an indicated resource of 19.6 million tonnes grading 8.2% zinc, 1.6% lead and 13.6 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 8.1 million tonnes grading 6.8% zinc, 1.2% lead and 11.2 g/t silver (at a 5% zinc cut-off grade). Using this estimate, the deposit contains 3.54 billion pounds of zinc, 685 million pounds of lead and 8.6 million ounces of silver in the indicated category, and 1.2 billion pounds of zinc, 207 million pounds of lead and 2.9 million ounces of silver in the inferred category (at 5% zinc cut-off). The deposit remains open along strike and at depth.
Tongling Nonferrous Metals Group, Jintuo (Canada) Investment Co. Ltd, Teck Resources and Korea Zinc are significant shareholders of the Company.
Teck Resources and Korea Zinc have also entered into an option agreement with Canada Zinc Metals in relation to 3 of the Company's Kechika Regional Properties.