re: chinese zinc deposits part ii jharmann Great commentary - jharmann - thank you.
My take on that is zinc, particularly, (my metal of choice) has a very long properous future for at least a year or so - let's review it in 9 months!
The profitability available to a coy like ZFX is just about obscene.
Analysts are still using prices which are so behind spot that there are surely going to be serious and multiple upgrades over next 12 months - despite their inclination to want to understate. It will be hard for them to factor a zinc price of $1 when spot is $1.60 - $1.70+.
Interestingly, despite increased costs to the mining industry all the extra price on zinc above about US$0.70c lb (and I'm being generous) is absolute PROFIT - for someone like Zinifex to be making a US$1.00 per lb is just totally mind blowing!!!
I have a feeling that if positive response comes out of LME love-in being held in UK this week (and it looks like Zinc is #1 choice for metals in 2007) then zinc producers currently, including ZFX could just jump up dramatically. Perhaps the past couple of days could be the intro to that phase.
It's very exciting now!
......... and your expert reporting is highly valuable.
ZFX
zinifex limited
