IBG 20.0% 0.2¢ ironbark zinc ltd

the days of quick easy money are behind us

  1. 156 Posts.
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    Below is another article I found today reiterating the zinc fundamentals.
    Despite the lack of excitement at the moment, the fact remains -
    1.down the track fundamentals for zinc look good in coming years. (No shortage of articles to support that)
    2.Backed by major players in the zinc market.
    3.Aquisition round the corner (which will change the game for IBG altogether)

    This company represents a very good investment going forward.
    But if you are looking for a quick 150% my suggestion is that you close your eyes and think back to the days of 2005 - cause thats the only place your going to find it!!

    Delays in BFS are certainly frustrating, but from what I understand it is not because there are problems but rather more positive developments. No excuse i know. In terms of share price I think the BFS is not really weighing heavily on the minds of those in the market.

    The article

    Zinc

    The third horse in this race is zinc and it is one that could well see some of the smaller diversifieds surprising at the finish line.

    As RBC Capital Markets points out in a recent note, "Over the coming 3 years there is only one base metal for which we see structural change in the price profile and that is zinc. The degree to which we see pricing strength as both Century and Brunswick come off line is anyone's guess. However, the largest zinc producers globally have already started to reposition themselves. Vedanta has announced its restructuring to align its P&L and balance sheet. The proposed Glencore/Xstrata merger should also relevel the asset side of Glencore's balance sheet. Meanwhile Teck is directing its excess cash towards copper reinvestment while keeping an eye on its investment grade rating. The most interesting bit of all this is that none of the majors are investing significantly in zinc. Reinvestment in zinc is being left to some of the smaller zinc miners like Nyrstar."

    Scotiabank's Patricia Mohr is also a fan of zinc writing recently, "Zinc may represent the next big base metal play. Zinc will shift into ‘deficit' (at latest by 2014) due to ongoing demand growth in the face of significant global mine depletion in mid-decade."

    "In 2013, the closure of the Brunswick mine in Canada, Century in Australia and Vedanta's Lisheen mine in Ireland will shift sentiment towards zinc, with prices rallying in anticipation of tightening supplies," she forecast. "In the second half of this decade, zinc demand will be boosted by a recovery in G7 construction activity, particularly in the USA, China could start to use more galvanized steel in the underbody of a car."

 
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