Anyone read Bob Moriarty before?It should be no surprise to...

Anyone read Bob Moriarty before?


It should be no surprise to anyone reading the web; China is slowing down after 15 years of record growth. It would not be foolish to believe copper and the base metals should have a pullback based on a reduction in future demand. For one base metal, any demand reduction will be more than met by a more massive supply reduction. That commodity is zinc.

Zinc is the fourth most commonly used metal in the world after iron, aluminum and copper. Two major mines are starting to shut down in 2013 including Xstrata’s Brunswick zinc mine in Canada and Minmetals’ Century zinc mine scheduled for shut down in Australia. Between those two mines, there will be a 765,000 metric ton loss of zinc production in the next three years.

In a piece in the Financial Times on February 15, 2012, Macuarie’s commodity research team picked zinc as the top base metal pick with estimates of price increases up 50% from current levels. Regardless of demand changes.

One Aussie play that looks the goods, (waiting to be plucked?) TRO
Any Credit for this one goes to Locantro Capital who called it at 9c

http://www.321gold.com/editorials/moriarty/moriarty022212.html