big buyers still at the chomp, page-2

in the next 2 weeks Scott will talk to some of the big boys. Let's see what will happen then.

Interesting opinion:

Terramin says zinc price set to recover

Zinc miner Terramin Australia Ltd says it is not operating at a loss unlike some of its peers and that the metal's price will recover from its low levels in coming months.

The zinc price has plunged in the past 12 months from around $US3,000 per tonne to about $US1,600.

"A recent media report suggested that 15 per cent of all zinc miners are operating at a loss at current metal prices," Terramin said on Thursday.

"This does not include Terramin.

"We remain well positioned to ride out this part of the cycle and expect lead and zinc prices to regain long-term levels in the coming months.

"Metal commodity prices including lead and zinc have retreated significantly in the last few weeks and months, causing the industry to dramatically reassess current and future business plans.

"Teck Cominco has shut the Lennard Shelf base metal operation in Western Australia, AIM Resources has suspended development of the Perkoa Zinc project in Burkina Faso (west Africa), and CBH Resources has elected to cut their workforce at the Endeavour Mine in (Cobar) NSW and target high-grade ore to remain viable.

"In the medium term, the curtailing of new projects makes it inevitable that prices will go much higher to meet demand, which is still growing strongly."

Terramin said it was getting much higher than expected grades at its Angas underground mine in South Australia, which commenced production last month.

The mine is expected to produce 400,000 tonnes of zinc and lead-copper concentrates over its seven-year mine life.

The zinc will be exported to Korea while the lead-copper will be delivered to SA's Port Pirie smelter for refining.

Terramin's shares closed half a cent higher at $1.865.