Hartleys latest report looks great, page-50

Why I am assuming that is because these days the momentum money managers and hedge funds create large fluctuations not based on demand and supply but rather on trend. Has the demand and supply of zinc changed now or even over the next 6 -12 months warrant such a shift . I think people fail to realise the differnce between underlying demand and speculative price movements . If you subscribe to the USD impact , then you should also consider that a stronger USD has it’s on constraints as it impacts emerging economies and global growth, as well as it’s own trade deficit putting natural breaks on further increases.
I think we will see a price of high 20s before the years out , but I also keep thinking about whether MGX does infact already have an interest in RVR as was suggested 9 months ago , and given their strong interest in Zinc and preference to stay on shore whether they don’t make a bid to take advantage of the SP weakness. Let’s not forget and acquirer like MGX would be able to extract 5-6 m in corporate cost savings p.a alone. An acquirer would also place value on the mine infrastructure and mine development thus far. A new zinc project has both Capex and opex costs , thefore the IRR of a new project takes both into consideration, buying something that simply has opex considerations as most capex has already been spent is of significant attraction. Moreover a cashed up player like MgX could continue with significant exploration and development activity to ramp up economies of scale. Having said all that RVRs value isn’t in today’s spot price but rather the medium to long term price of zinc vs the reserves /resource RVR have already discovered .
Although I wouldn’t mind marking a quick 30% within a coupe of months and exiting , I think the risk / reward is very attractive for a 1-2 year hold. The market does 9-10 % over the long term therefore even a low 30s price over a two year time frame would outperform most other investments