It certainly feels like we have hit the bottom, but too many of us (especially the long termers) are looking at the now-rotten sp and comparing where we think it should be, with where it has been (even recently). The Mighty Ox has always been driven up by fundementals - good projects, resource upgrades, increased production, strong metals prices, etc.
How do those fundementals apply now??? We are not that same company anymore - we are mainly a zinc miner now, so let's not kid ourselves about where the sp "should" be based on our perceptions of the past. Hopefully, a re-start at Sepon, stable copper and gold overnight, a weaker Au dollar and a potentially strong US & Europe performance tonight will offset the drag that zinc (our main source of revenue) will have on the sp.
This just reported by Rueters:
TIN AND ZINC DROP
Zinc fell 3.9 percent to an intraday low of $1,905 a tonne -- its lowest level since early January 2006 -- and the metal has lost some 20 percent so far this year. It was last indicated at $1,934, down $49 or 2.5 percent on arbitrage-related selling and poor fundamentals.
"The metal had gone up in the last weeks because of the price difference between Shanghai and the LME, now it's evened out again ... Funds have been negative on that one for a while," an LME trader said.
Another trader said expectations of supply coming onstream in the next few years and lack of demand weighed on prices.
"There's plenty of it around," another LME trader said.
OXR
oxiana limited
