ZINC 0.08% $2,575.9 zinc futures

The Incredible Shrinking Zinc Supply, page-4

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    Well it seems market is catching on! IBG is up to .067 today and started last week at .045 - 49% increase. Not surprising given the two big Swiss shareholders Glencore and Nyrstar paid 30cents plus for their 33% shareholding and it is fairly clear zinc has a long way to go over the next two years. Here's another recent article:

    June 26, 2014 Steeling Zinc as The Anticipated Shortage Gets Closer
    Cypress Completes Phase One Drilling Near Carlin Trend in Nevada VANCOUVER, BC / June 26, 2014 / Even the newest of metals investor knows that Nevada is the Mecca for gold mining, producing almost 80% of the US supply. Hundred's of billions of dollars worth of the metal has been extracted since 1835. Everyone talks gold, maybe silver. Investors need to focus on zinc.

    The zinc market remains somewhat ugly. Per pound, the price is around US$0.96. Forecasts seem to indicate that the price should see north of $1.00, maybe $1.20 in 2014-15. While price is important, the underpinnings to price are the oft-quoted looming zinc shortage. And as much press as gold gets, we really need zinc. Arguably not the sexiest of metals, zinc is essential to a myriad of industrial uses and a critical component in the growing global demand for steel production. With almost 3.4 billion pounds of global zinc production set to disappear through 2015, new resources coming online should demand investor attention.

    "Cypress Development CA:CYP +14.29% (otc pink:CYDVF) (frankfurt:C1Z) is keenly aware of the importance of addressing the looming zinc shortage," states Don Huston, President and CEO. "Our latest drill program at our 100% owned Gunman zinc-silver-copper project in Nevada evidenced three impressive targets in the centre of the property. Assays from five-foot interval samples within the oxide zone and adjacent fractured dolomitized limestone show spectacular zinc and silver mineralization." Gunman Property Nevada The 1140-acre Gunman is 100% owned by Cypress, which has completed 33k feet of drilling to realize impressive per-ton grades of 5-33% zinc and 0.5-15 oz. silver over considerable widths.

    The key here is that zinc enjoys ongoing and growing demand in the face of major mine closures in Canada, Australia and Ireland. The sentiment within the industry is that there is not enough supply coming on-stream and prices are forecast to rally as those supplies tighten further. In a recent report, The World Bureau of Metal Statistics reports the market was in a small surplus last year, specifically 78,000 tons between January and December 2013, but that is down from a 343,000-ton surplus the previous year. China is the world's largest consumer and refiner of zinc, so demand and production in the country is key to the fundamentals for the metal. A leading zinc supply/demand indicator is the LME stock number, which dropped from 1.1 million tons a year ago to approximately 650k tons-roughly November 2010 levels.

    The price rose from that point to about $1.15 a pound in 2011 and bottomed at $0.80. Current price as stated, is $0.96. Huston continues: "More than 2 million tons of required new zinc supply is forecasted by 2016 yet there are very few new zinc mines in the development pipeline. The Company believes there will be strong upward pressure on the price of the commodity and the high grade, shallow Gunman zinc-silver project offers Cypress and its shareholders leveraged exposure to this potential price increase."

    Full article http://www.marketwatch.com/story/steeling-zinc-as-the-anticipated-shortage-gets-closer-2014-06-26

    The "IBG presentation" bottom left of their homepage http://ironbark.gl is a must view IMO. Their feasibility study based on zinc price of $US0.85 per lb and the price is now nudging $1 with all sorts of forecasts going forward. The Swiss know what their doing - been buying up all the developers lately, leaving Ironbark with the largest resource of any junior in the world.
 
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