for the longtermer

Zinc Market Overview
Link to full document
Zinc prices have fallen dramatically from the November 2006 peak; what next? Initially the rapid decline in zinc price was a natural correction of ' too far too fast' followed by concerns of inventory buildup with new production from restart mines and a few new projects, primarily the large San Cristobal mine in Bolivia. More recently, concerns as to expectations for falling demand in response to slow down/recession in the United States economy as it struggles with the current home mortgage debt crisis.

Current forecasts are for surplus zinc concentrate and mine supply for 2008 and 2009. This is likely the case but it is not a given if you consider that the initial mine production forecast for 2007 was downgraded by 500,000 tonnes over the course of the year. A repeat of this downgrading of production would eliminate the current forecast surplus for 2008 and 2009; thereby balancing the markets ahead of the long slide in mine supply that begins with shutdown of Brunswick Mine in Feb 2010.

Various market influences are contriving to create the "Perfect Storm" of deferring current mine production needed to meet the fall in current mine production that begins in 2010, setting up the fundamentals for a sustained period of high zinc prices following 2010. The new mines are not being built and most projects are delayed; now is the time to start planning to take advantage of this coming market opportunity. Much of the doom and gloom appears to be already built into current prices reducing downside risk and there is reasonable potential for a good rebound in the zinc price ahead of an intermediate term major upward movement in zinc prices.

Link to full Zinc Market Update document

For more information on the zinc markets and Yukon Zinc Corporation visit us at the Vancouver Investment Conference January 20-21 booth 1201.
Click for information on how to register http://www.goldshow.ca

For more information contact:
Dr. Harlan Meade, President and CEO
Shae Dalphond Manager, Investor Communications
Telephone: (604) 682-5474 Toll-free: 1-877-682-5474
Facsimile: (604) 682-5404
[email protected] www.yukonzinc.com