ssc-right place-right time perhaps?

Its no wonder that there has been continual delays as aforementioned on this thread in regards to production with a major over hang of supply existing especially with the japan earthquake-

Im not here to earmark conspiracy theories or what-not, but the longer the delays to get our major zinc mine to production the better me thinks in the medium term as the real breakout for zinc prices will come towards the second half of 2012 with major mines closing in 2013. Its common knowledge by many of this exact situation and I wouldn't be surprised in the slightest for the continual delay in commencement of production. Either way, Sultans emmergence in the Togo Phosphate tender process further strengthens this view in my opinion as it will enable them to start earning cash from the operation in the medium term to keep afloat until zinc prices start to pick up. Ive seen this happen on many companies I held a while back that acquired base metal projects whilst oil and gas prices were depressed ( which were there core business model) and once oil and gas prices rebounded they then returned to production of their oil and gas assets. Just food for thought but why produce an asset now that you would get say $1 for today when you can keep that asset in the ground, which wont be going anywhere, and then sell it into a burgeoning market where that $1 price was now say $3 due to a major shift in the demand/supply equilibrium -

End of the day, keeping afloat and avoiding major share dilution is the key to the survival of Sultan Corporation but should be successful in the attaining a near term producing asset, more than happy to put our major zinc projects on the back burner until the supply deficit comes which will cause the price of Zinc to breakout and create major merger transactions by the major Zinc producers of the world trying to obtain significant zinc inventories to meet consumer demand -

Either way, some light reading below to reiterate some of the above views and heres hoping that hopefully ladyluck will grant us the Togo Phosphate project, to make these anxious days of waiting all the worthwhile -




The zinc price reflects four consecutive years of surplus although RBC predicts that significant mine closures over the next three years will cause inventories to peak next year and then begin to decline sharply in 2013. And rising mine production is not expected to be able to match the rebound in demand beyond 2012, which will draw inventories down to minimum working levels and support a higher zinc price.


http://www.investorschronicle.co.uk/Companies/ByEvent/Risk/Analysis/article/20110622/a91e8508-9cb8-11e0-877d-00144f2af8e8/Copper-continues-to-shine.jsp

"We expect China to have to import growing volumes of concentrate but don't see this tightening the global market just yet, with strong growth in output forecast for much of 2012," the report said. "We expect the surplus to shrink through [second-half 2012] as production growth slows."

As some key zinc mines close in 2013, including the 200,000 mt/year Brunswick and 125,000 mt/year Perseverance mines, this should lead to stronger prices in the second half of next year, Barclays said. --Laura Gilcrest, [email protected]

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Metals/6280373