eureka report - out last night !!, page-13

Zinc shines on the ASX
Friday, January 17, 2014 by Proactive Investors


Zinc prices are forecast to rise this year.
Zinc prices are forecast to rise this year.

Investors have been focused on nickel plays as prices rose following Indonesia’s decision to ban raw material exports on Sunday, but other metals have also been affected including zinc.

As a case in point, Barclays had earlier this week raised its zinc price forecast for 2014 to US$2,138 per tonne this year citing improved demand outlook for industrial metals.

Zinc is currently trading at US$2,054 per tonne on the London Metal Exchange, a sharp gain from the US$1,825 to US$1,900 range it was trading at in November 2013.

Barclays said it expects “the global refined zinc surplus to shrink markedly this year” and for the market to move into its first deficit in almost a decade in 2015.

ASX Zinc

A number of ASX zinc players have performed well with Ironbark Zinc (ASX: IBG) rocketing up 23.21% today to $0.069.

The company wholly-owns the world class Citronen zinc and base metal project that is located in Northern Greenland where a Feasibility Study had forecast production of 3.3 million tonnes of feedstock; initial mine life of 14 years and CAPEX $484.9 million.

Life of Mine OPEX is estimated at US$3.42 billion to produce total revenue of US$5.65 billion.

The Internal Rate of Return is estimated at 32.0% (22.2% post tax), and Net Present Value is US$609 million (US$354 million post tax).