is she a gonner, page-33

re: slaughtered.but.......ganns motivation zinc softness is temporary based on low volume over the xmas period and chinese exports due to rebates.

07 will be in deficit and there is a good chance 08 will be as well. The next major zinc mine is in bolivia- with the govt talking about nationalising it. Herald also has a mine which was targeted for '07 but is also facing more delays.. and by mine I mean 200kT/pa+ - not many of those around.

finally the spot market is only a fraction of the true market.. short term prices on the LME are not a good indication of true supply/demand as stockpiles are also kept outside

Chinese demand for the metal is forecast to be higher YoY in '07. Steel production is up again massively.

My belief is we haven't even seen price action yet - and the metal could run again hard over the next 12 months.

Zinc price is over the short term affected by swings in copper- the barometer of industrial activity. However - this is over the short term. I see these events as buying opportunities..