Report below isn't great for zinc prospects medium term. Seems...

Report below isn't great for zinc prospects medium term. Seems so many conflicting opinions. OZL thinks Zn will boom next year. We badly need it to recover, but at least when PH comes on board December, our zinc dependancy will be diluted. If ever there was a case to spend big on buyout of another company (non-zinc, non-nickel for God's sake!) this is it:

Dow Jones:
Standard Chartered says zinc price weakness expected to be sustained in medium term on continued surplus of concentrates supply. Cites International Lead and Zinc Study Group data showing zinc mine output up 9.2% in January-May period, while consumption only up 1%. Tips refined market to be in surplus of 502,000 tons in 2008, and 699,000 tons in 2009. "Marginal producers are coming under pressure and may be forced to cut output, but substantial cutbacks would be required to prevent fresh weakness as the year progresses." Tips 3Q08 prices to average $1,800/ton, 4Q08 at $2,000, 1Q09 at $1,900, 2Q09 at $1,850. LME 3-month zinc bid at $1,753, down $7 since yesterday's kerb, volume moderate with 117 lots done.(JAC