BMO Comments on Zinc - fares well for NSU for next two years
BMO Comments this morning - fare well for Bisha cash generation over the next few years, as Timok goes into development and production:
Zinc has long been a favourite of metals analysts, and with visible and invisible inventories continuing to decline, the market deficit is increasingly conspicuous. And solving this deficit is not easy, which is why we have raised our 2019 price to US$1.50/lb from US$1.45/lb, and 2020 to US$1.30/lb from US$1.20/lb. Beyond this, however, we expect a combination of new supply projects and moderate demand destruction will see a steady return to the cost curve, even with greater penetration of galvanised sheet in China and other emerging economies supporting decent demand growth rates.