Hey Mesh, you're likely right that it was at least in part...

Hey Mesh, you're likely right that it was at least in part caused by margin calls, whether againstTZN or other positions. It's also just the general fear against holding anything at this time, which causes panic selling on momentum - people run with the herd.

Fortescue (which I don't hold and have never have) also wasn't assisted by the announcement that Chinese mills had requested delays in shipments, along with a listed mill closing. However, in my opinion there's more to that than meets the eye - they have requested delays to Q2 shipments, which is when annual negotiations are. Giving an impression of oversupply certainly strengthens your hand when pushing for a flat price renewal of even a drop. Anyhow, I digress...back to zinc.

Terramin certainly does seem well placed; as you say, they're running on budget and ahead of production. Offset somewhat by even lower base metal prices, but let's consider the two net off flat. Sooner rather than later it seems likely (again, in my opinion) that we will see zinc supply snap back to deficit, give the price suport and an uplift. Certainly marginal mine closures have helped - I have read that they say there has been no reduction in Chinese zinc mining, but their refineries are cutting refining costs, which generally indicates lest demand for their services. If this does happen, then the early closing of the hedges could well be a stroke of genius - Terramin secures a good portion of cash for moving towards Algeria rampup, lessening the requirement for expensve debt funding or issuing equity at a dilutive level, while also allowing them to sell into rising spot prices. Does anyone have the hedge information at hand so we can model the cash effects of the close outs? It would likely have been done on a simple discount to PV value of the hedge, perhaps using a discount factor of 10% (being conservative).

I topped up with some more on Friday at $1.03 (I'm based in the UK and my HK trading desk bought on open...b*gger :), which helped average me down, as TZN didn't cross my radar until it was around $1.80; happy to now sit tight and take a medium term view.