Ann: 40.92% ZINC IN UNDERGROUND SAMPLING AT CERRO RAYAS, page-88

Zinc Market Timing
The zinc market is currently being squeezed on both sides of the demand and supply argument.

For starters, zinc supplies continue dwindling due to several large mines closing, while new supplies are slow to bring online and commercialise. Ireland probably bears this out most.

Traditionally the epicentre of metals mining, Irish miners and processors have been retreating from the zinc market due to waning prices and a huge backlog of inventories. However, this backlog is now slowly being depleted, as there have been no new significant zinc deposits discovered since the 1990s.

Supply is tightening with Irish producers dropping like flies, and inventories waning. This leaves only the demand-side.

Zinc demand has remained stable despite the cyclical nature of zinc prices. Low-cost producers are best able to weather the cyclical market changes, and we think PUR is moving exactly in this direction.

Steel-building is growing again which is important because zinc remains a key industrial metal used to galvanise steel and has many industrial applications that are closely related to manufacturing.