Still way undervalued relative to zinc price

While we wait for fresh momentum, interesting to compare historic IBG share price relative to the zinc spot price. I provide charts, some possible explanations and implications on the share price going forward.




Since the 2nd half of 2011 through to very recently, say three years the zinc spot price was less than $US1 per pound.

IBG share price during this time slowly dropped, though was still above 15 cents until mid 2012, by which time the spot price was less than $US0.90 per pound. I suspect the sell off from L1 Capital thereafter brought the price down to seriously undervalued levels and we are still recovering from that. Or perhaps the market reacted slowly as the zinc price fell and similarly is taking time to respond now the zinc price is rocketing.

Either way, it indicates IBG at 10.5c with zinc spot price now nudging $US1.10 has a long way to go, and should keep motoring IMO as the zinc climbs above $US1.10 per pound.

Very BIG on IBG