re: resource upgrade at endeavour Newer investors should also...

re: resource upgrade at endeavour Newer investors should also refer to the Hartley stockbroker report on the the CBH website. Hartleys suggest a sharepriceprice in excess of $2.30, should the zinc price hold up.


HOLD UP: read this from Kitco this morning:-



European Spot Zinc Premiums Hike After Summer - Traders



LONDON -(Dow Jones)- The end of the summer months and galvanizers getting ready to ramp up production has sharply hiked European spot zinc premiums, traders said Monday.

Spot premiums for special high grade zinc, basis duty paid have hiked to $280- $340 a metric ton over the London Metal Exchange zinc cash price, up from around $250/ton last week.

"Customers are coming back from their holidays but there's hardly any availability in the market. Most supplies are from LME warehouses," one physical trader said.

Zinc is mainly used as an anti-corrosive coating for steel products.

LME zinc stocks have plunged over the course of the year as consumers draw on exchange stocks as metal of last resort. At the beginning of the year, LME warehouses held 393,300 tons of zinc, now down at 170,250 tons.

"There are rumors that some galvanizers have had to stop production for one or two days in the higher quality segment, but I've seen no evidence so far," another trader said.

Zinc prices have hit a record $4,000/ton during May, up 113% since the start of the year and have since retreated to trade at around $3,400, but still far above the historical average at around $1,000-$1,500.

"The hike in premiums at the end of the summer is understandable. Some form of cut in consumption will be inevitable because there is such a shortage of zinc," CRU analyst Giles Lloyd said.

"Manufacturers may apply some voluntary measures, painting products such as farm gates instead of galvanizing them," he added.

"We have applied a zinc surcharge on our products for the past 18 months. Customers have accepted the charge though it is hard to say whether high prices have led to a smaller market," a spokesman at U.K. galvanizer Wedge Galvanizing said.

Years of depressed zinc prices have curtailed exploration investment, leading to few new zinc mines coming on stream at a time of increased commodity demand due to China's and some extent India's economic development.

Long lag times of up to 10 years to bring new mines into production have produced a protracted zinc shortage, exacerbated in some cases by a higher cost environment and lack of mining personnel.

Physical traders in European increasingly looked to New Orleans LME warehouses as a source of metal but freight cost and shipment were currently a deterrent, they said.

"One of my customers doesn't want to pay the current premium. I'm looking at zinc in New Orleans but we need to work out freight arrangements first," a trader said.

New Orleans warehouses hold 126,775 tons of LME zinc warrants, or 74%. Much of the material had to be cleaned after flooding following Hurricane Katrina submerged many warehouses.

Extreme tightness in the zinc concentrate market will likely ease somewhat towards the end of the year, analysts said.

Shipments from Teck Cominco Ltd's (TCK) Red Dog mine in Alaska would ease the tightness somewhat, they said. Red Dog only ships for a limited period during the summer months but in 2006 extreme ice conditions delayed vessels for two to four weeks.

-By Elisabeth Behrmann, Dow Jones Newswires; (4420) 7842 9412; [email protected]


(END) Dow Jones Newswires
09-04-061300ET
Copyright (c) 2006 Dow Jones & Company, Inc.

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The latest company website presentation indicates that the Sulphur Springs BFS is due this year. Previously they had said it would come mid this year.

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London presention will be available after the event for a webcast download, Todays upgrade may have come specifically so that it can be covered in London tonight our time.