battered to 80cents a zinc pound value, page-16

That being said if Aim can break back through 14.5/15c it may be on its way up again after the base metals sell off.This would be very dependant on just that.If we see yet another fund sell off in base metals then it will be on its way back down again.

The longe term zinc chart is definitely showing just how resistant zinc is being to the drop with reports of consumers coming back in with strong buying again around $1.40/lb.

Imho this is where it will probably settle as long as the funds can be kept away from it.This may be doubtful though if the stockpile trend continues the way it is and those reports of LME supply problems in New Orleans are on the mark.Funds will unfortunately pile back in on such news and this may have been why we saw the jump at the end of the week.

Hopefully at some stage in the next few months zinc will be left alone by the fund speculators and we might actually get some true indication of what consumers are prepared to pay for zinc.But with the recent acceleration in stockpile drawdown at the current zinc price it looks to be around the $1.40 mark which bodes very well for Aim if they do have a portion of the offtake unfixed considering its 80% above the bfs figure.

It will be a big call by Flory if he does do this with any portion of the offtake but then I suppose they could fix the portion they need for payback and let the rest float at market for some upside.

Wish he'd just put us out of our misery one way or tother.

d.