Ann: High Grade Zinc Results Continue at Far West, page-27

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redsceptre

5,336 Posts.

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19/05/17

17:53

Post #: 24802929
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Originally posted by thaiinvest ↑

Don't worry about it - just take a look every week or so - these are short term ebbs and flows in the bigger picture
RVR to me is well placed and the longer term zinc shortage story is still in place - once we start producing 3rd /4 Qtr we will in my opinion see a significant re-rating probably double to where we are today - so not too long to wait.
The LME zinc physical stocks long term trend is down - we have seen a short term growth in physical zinc stocks for the last few days - if you look this happens every couple of months - but the long term trend is down definitely significantly down and when we break below 300,000 tons in about 2 months time I think that will put renewed thought behind the growing shortage.
Yes Glencore has some large zinc capacity mines/ plants put on care and maintenance that they could restart however my understanding is that they have said they would need a consistent price in excess of US$1.60 per lb before they did this. Given the current zinc price is US$ 1.15 per lb I think the falling zinc stock inventory will lead to an increasing pricing beyond US$1.30+ in the 4 Qtr when RVR starts producing.
So chill and have a good weekend

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hey thai, that's a very interesting comment regarding glencore, wouldn't happen to have a quote or source for that would you? (long shot...)

RVR Price at posting: 17.5¢ Sentiment: Hold Disclosure: Not Held
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0 Great analysis

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