look at the share and price volume of RVR over the last 6...

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seaforth1

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04/08/16

08:10

Post #: 18440230
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Originally posted by Bobsa ↑

All commodities move between periods of under and over supply whilst the market finds the point where it find equilibrium.

Over the past 25 years, Zinc has suffered from significant under investment given the world has had very good supply from very high quality mines and when the GFC hit everyone seemed to forget this supply was drying up.

Unlike some commodities, China has good Zinc resources, however like most commodities finding high grade sulphide ore is difficult.

The market (price) will therefore need to increase to bring on supply of lower grade sulphide deposits of significance, like Citronen, and at some point Zinc oxide deposits which seems to be where the larger known zinc resources exist.

Whilst Citroen is relatively low grade, it is significant and the shallow, flat lying structure make it economic at even today's low price which makes it one of a relative few. The govt and funding will be difficult in the markets however as prices increase it will be funded and get into production.

The RVR mines are a different thing entirely. It will get into production because the cost of doing so if nothing. Whilst there grades are pretty good, it definitely isn't an all weather operation. They have the advantage that they should be in production during a time when prices are high.

HRR has turned Woodlawn around so that it now showing the quality to get funding and be profitable in all/most markets. It ain't going to fill any supply gaps but should provide a good return in their investment.

These three companies are the companies which I expect will actually get into production based on current operations.

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look at the share and price volume of RVR over the last 6 trading days - market and money is starting to back RVR as a real play
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0 Great analysis

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