IBG Market Cap, page-13

Thanks djr. Good find and interesting review of the current zinc situation with the deletions and new projects listed over the next few years. Particularly like their emphasis of the "dual deficit" and they are very clear about where we are in the zinc cycle.

The table below from ten years ago, the last time zinc LME inventories were around 400,000 tonnes level and heading south, is a timely reminder of how quickly the zinc price can change relative to the LME inventories.

When the inventories were 410,000 tonnes, the same as today, the zinc price was $0.83 per lb, a little less than $0.86. Some might argue it should be higher today for costs, inflation etc. But look what happens a little over a month later at 372,850 tonnes - zinc has soared to $1.05 per lb and note the daily decline amounts were not that big at all.

Some people need to look at the past sometimes to appreciate just how dynamic the zinc price can be as reality begins to dawn not the market. And also look at how IBG share price can exemplify the multiplier effect