Not that we don't already know...

Not that we don't already know this.

http://www.macquarie.com.au/wasp/dailytrader/dailytrader_dttradingpickofday_2.htm

Zinc – share price catalysts remain intact

2006 is shaping up to be a very strong year for zinc, with the global supply/demand picture pointing to further substantial reductions in inventory levels. So far this year, the zinc price has risen by 35% as the lack of mine supply growth in 2005 has finally started to bite, constraining growth in refined production. Therefore, refined zinc stocks have been trending down steadily, adding to the belief that the market has now moved into deficit. In addition, major miners remain
reluctant to invest in zinc, despite improving prices.

The global supply/demand picture points to further substantial reductions in inventory levels, with reported stocks expected to be below 3½ weeks of consumption by the end of the year (critically tight!). Thus, 2006 is shaping up to be a very strong year for zinc. Given MRE’s bullish outlook on zinc prices and Zinifex’s high leverage to the metal, the company is well positioned to benefit significantly within this environment.