take the 12 month view, page-4

yeah guys,

Zn price looks like its going to climb slowly as more reports are coming out saying that in the second half of the yr, there will be a zinc shortfall again of 100-200k depending on what report you read. chinese are due to close down inefficient mines and export rebates are being annexed, so theyll have less incentive to export. So second half zn price 'should' climb slowly.

certainly the 'negative sentiment' is starting to dissappear away from Zn , and a little bullishness creeping in.

When 'traders' sense this 'shift' in sentiment, they jump on for the ride.

IF the price of Zn goes back up to the $1.80-$2.00 range, then YES , we will see PEM back up to re-test old highs!

COPPER production in future adds a lot more 'spice' ala KZL, especially with copper prices higher for now.

Zn price expected increases in second half should help this one out. When the full yr result is in the past and ppl look into '08 with full production, added production from beltana and copper in the wings, there will be a re-rating of the stock.

In fact all they need is a good quaterly in the 3rd qtr showing full production and beltana and no hiccups and the 'risk' element starts to dissappear for meeting '08 forecast!

ppl that got in recently will be laughing if Zn price goes back up to 1.80