The market conditions are still tough for Zinc producers. But...

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Lamb1982

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25/06/20

12:00

Post #: 45443737
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Originally posted by DoctorFouad: ↑

IMO what will make NCZ in the short to medium term are the recovering zinc prices (1$+ per pound), sustainable low treatment costs (sub 200$ per tonne), increase in production (40.000 tonnes per quarter) and improvement in recovery rates (55%+).

The Goro opportunity is just a nice long term plus opportunity to have that may materialize or not. As it stands at this moment its a demonstration that management are thinking long term which in itself is a good sign. Even if Goro doesn't work out, the infrastructure at the current mine to port is so impressive and special that there should be other opportunities to exploit in the region which explains IMO the IGO interest.

I believe given fundamentals of the market, sub 1$ per pound for zinc is ridiculously low and the monetary stimulus policies around the world will ensure a return to 1$+ per pound pricing sooner than later which will ensure nice profits this year for NCZ. This catalyst alone warrants a short burn cascade and a fast re-rate of market cap/share price. If anything positive this year about Goro its just an icing on the cake.

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The market conditions are still tough for Zinc producers. But this may turn around and with it NCZ profitability.

The June report will shed light on how things are tracking. Hard to get over excited just yet.

But they do own some great infrastructure in this area with a Port for transhipment.

They have room for upside and movement beyond the sub 20c.

NCZ Price at posting: 17.0¢ Sentiment: Hold Disclosure: Held
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The market conditions are still tough for Zinc producers. But...

Top Stories

Westgold sets its sights on top five producer status through merger with Karora

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Is oil undervalued?

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Venture to sniff out high-grade REE targets at Jupiter project, WA

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

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Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

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