zinc a bargain and likely to rise, page-2

I agree, when the price is so low that it brings into question the viability of mines, one does wonder. If predictions are correct re mine lifes around the world and future supplies declining due to no new mines coming on line it does not really make a lot of sense for the price of zinc to fall.

Short term market speculators are manipulating the price downward, just as they will manipulate it upward in about eighteen months.

TZN with its ultra low cost productions will ride through these zinc price issues/fluctuations and still make money even at the low point.

The only question is? will some savvy operator snap this company up in the interim whilst prices are down.

Now before you all race to tell me about the large group of loyal majority shareholders who will hang out for top dollar, let me pose this question.

At present (based on SP of $2.80)

DP & KM own approx 20% worth approx 56 million
Insto's own 40% worth approx 112 million

IF someone was to come along and offer say $6.00 per share would they hold out for more. The official line has always been they would never sell out the company for anywhere less than a billion dollars.

But lets look at reality.

At $6.00 this would give DP and KM a cool $30 million each and as they are both at the latter stages of working life, I think 30 million would have to look very enticing to retire on.

Then there is the insto's which as far as super funds have just had their worst performing year in over a decade. So if suddenly they are offered a 100% return on their money they would mostly likely take it as they are in the business of making their funds look attractive.

Just my thoughts