When you look at the LME stocks of zinc 4 yeara ago they were 800,000 tonne and the price was around 50c. Today the LME stocks are 153,000 tonnes and the price around .79c. Going on the historical data the LME stocks should be around 500,000 tonne at .79c Sure the housing market has slumped in the US, but the world will go on and after this financial debacle has been cleaned up and the greedy buggers flushed out, people worldwide have to live somewhere, factories need to be built, office blocks, infrastructure etc. Marginal zinc mines will now not go ahead, AIM will continue. Productivity will slow on zinc due to the price and prevaling conditions. Perfect for AIM, they will get further down the track with their own project and will be ideally placed when the market turns. The scenario could not be better for this stock. As Sack has said, patience now. and maybe a little foresight rather than hindsight.
AIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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