RE:RE:From Reuters this morningFunny also that just yesterday (!) Xi Jingping made a public speech about many things, but also about "enhancing price influence of important commodities" - really a FUNNY timing !! :)) The thing is just: every lie needs someone to believe it
https://news.metal.com/newscontent/101317530/xi-jinping-to-enhance-price-influence-of-important-commodities-to-better-serve-and-lead-the-development-of-the-real-economy
There s a reason why I would never invest in China. A friend of mine, former head of china business of a major global bank, once said (half joking, but the main message was of course serious): In China fraud doesnt exist. They think: "Why did you believe what I told you? Its your fault, you should have checked it." They dont even have a bad conscience about lying, its a normal way of doing business.
So yes, Xi Pings comments yesterday have an immediate consequence on the propaganda front. But I dont see it that serious: the dollar could soon see a major downturn and with it, commodities could rise just until spring. That would be the ideal scenario: a temporary deficit in zinc, a week dollar and with the deficit in zinc: low low TC in February/March.
Ideal also for Trevali..... but hey, lets just sit back and wait: right now we are between 1.18 and 1.20 for zinc - just perfect for Trevali and with a good good distance to the downside. Even if zinc would go lower again, Trevali still could restart hedging once zinc would hit 1,10 again. Which I guess it will not.
One last thing I am currently thinking of: IF ever zinc would hit 1,30 (lets just imagine that for a second) till maybe March..... wouldnt that be possible to SAFE that price financially for lets say 2 years just for Caribous production and then restart the mine? I m not a finance guy and I dont know if swaps and hedges could be made for 2 years in advance... so thats just an idea.....maybe some guys in here have more knowledge about that....?