I’ve only been here six months but my understanding is they overhyped the potential from the beginning, heavy promotion, over promising, much lower than expected recoveries, leading into lower zinc pricing and high TC’s that seem to go hand in hand. This created a dark cloud over the share and clearly not liked by the market. It’s unloved status attracted me. Finally we’re getting traction and all recent news flow has been largely positive. Most importantly zinc prices are rising and TC’s, that represent a large portion of costs, have collapsed. There is now some positive sentiment and management seem to have made a conscious decision to let the numbers do the talking.
They haven’t backed away from expectations on the Jameson Cell and so arguably the best is yet to come. Plenty of zinc, lead and silver being discovered potentially dispelling fears about LOM. My advice is don’t sell too early once this does get some respect because at the moment it’s on its backside with no support at all. Once there is some respect it’s got to be re-rated. Look at the prices of iron ore miners. That steel needs to be coated with our zinc and 2021 is our year.
NCZ Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
