And Flory wont want it collapsing any more than this if he's to...

And Flory wont want it collapsing any more than this if he's to chase his new tactic of listing on the TSX rather than going for a C/Note issue which was probably a shot duck anyway once zinc starting looking bearish with the Chinese selling and the likes of Red Kite trying to play the market,badly.Chelyabinsk seem to be the only ones that got it totally right.

If cancelled warrants dont start to pick up soon then one can just about forget enough of a deficit to reduce stockpiles much further and the zinc stockpile will probably do what copper did and bounce around the high tens of thousands for a year or so before starting back up again.

I cant see it getting back to much above $1.60/lb and thats if it even gets to there.Its looking like the Chinese may have enough zinc to be just about self sufficient so it will take another solid year of growth in Europe and a pickup in the US to create any kind of decent deficit over the coming months if those cancelled warrants dont start to improve.The price of copper is not helping either being the metal the funds weight themselves more closely to.

All this being said it shouldnt matter to this company as long as they can still meet their finance obligations.The interview Flory gave(if one should take it as gospel) implies the debt finance is a foregone conclusion.However Im not quite so sure the offtakers will be involved apart from the afformentioned over-run facility.I would dearly love to see the offtakers take a chunk of the finance deal as well as the TSX issue but as this is a smallish African deal its a bit hard to see them doing so.It seems unless your Chinese there is still this risk stigma about Africa.

d.