Why are we still here? Because there was a predicted zinc supply deficit this year which was projected at 72kt (https://agmetalminer.com/2018/10/22/global-lead-zinc-demand-forecast-to-rise-in-2019/) against a 1.1% rise in global demand, whilst lead supply/demand is predicted to remain overall stable or modestly in favour of suppliers. The recent reversion of zinc prices to mean won't last as it bounces off support at just over US$1200/lb IMO.
SL1 as a company has fallen short of some expectations on time but on the other hand it is producing at good speed and AFAIK is now cash flow positive, which means it's the right time to reassess financial arrangements and timelines (I reckon in a positive way). It has a big tenement with high probability of good yield and long term mine life but this has still to be proven and presented to the market. The trade war could be putting a dampener on resource demand short term but ironically it often just spurs demand in other industries, so I think the zinc market is overall bullish.
I'm still optimistic that management will come up with the goods to turn this story around, but we need news.
SL1 Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
