From Hydra Capital
This is a pretty boring company, but it remains stupidly cheap on pretty much any multiple I can think of. It’s boring. It’s zinc. Zinc inventories are low, really low. The TV chart is basically flat-lined as the stock trips along in the 35-40c range where I’m amazed that anyone will sell it. TV was 4-5x higher than current levels not that long ago and I don’t see why that can’t happen again if metals stocks continue to hold a bid. There are better stories out there, but there’s nothing this cheap of this scale that I am aware of… TV has guided that it will produce 360-400 million pounds of zinc, 45-50 million pounds of lead, and 1.3 to 1.5 million ounces of silver in 2019. All-in costs (i.e., cast costs plus sustaining capital) of $1-1.10/lb Zn are expected. Probably the best rationale for its limited downside here is that you couldn’t build a mine of that scale for TV’s market cap. I only know the story superficially, but am still happy to own it at these levels. It’s down 15% from January levels, but when I’m playing for 2-5x my money, 15% could be one good or bad day in a story like this. I'm not sure if anyone will ever care on TV, but this is basically a proxy for zinc and I like the base metals complex here.