Hi Dion, you raise a very good question and an excellent track for discussion. A few points to make and also some reasons why I am positive about Zinc.
- If you look at the Lithium charts, you will see a very similar pattern with a lot of stocks 40% ish off their highs. MCT rode the Li wave with Pilgangoora prospects along with other junior explorers and IMO most of the bullish pricing was Li related and not Zinc. (Just an observation). Has the market priced in the zinc play? NO. I agree with you.
- The market has been theme related, Li and now Cobalt, and zinc has not been a "theme" in this period.
- The fundamental analysis from commentators is that zinc is in a macro structural shift where further price growth looks very likely given demand and inventory shrinkage. (MacBank, Woods etc...) This thread focuses on this commentary; and it is unanimously positive.
- There is a "Tipping point" IMO when the zinc price reaches a certain level and then money flow follows. We are very close to that point now. North American and European stocks have larger enterprise value comparatively and it is a matter of time before we catch up IMO.
- The Zinc TA, if you follow that line of analysis, on a 5 year chart looks like a retracement with a resumption of uptrend.
- The Zinc story is alive and well in North America - look at Arizona Mining and study their project and you will see how much more value is seen there in zinc projects. (Arizona is around $750 m Market Cap) No coincidence that MCT management has been road showing in….. guess where........North America. Australia is lagging here.
- There has been no significant zinc discoveries for decades.
- I think zinc is the top three used metals in the world.
Regarding MCT Zinc, you will have noticed that the "price of entry" is becoming more and more enticing with the focus on high grade and ore sorting. It is all about the economics and MCT focuses on the best consulting advice around both in technical feasibility and financial sense.
Admiral Bay has enormous scale and excellent grade. Potentially the largest global play. Older research has valuations circa $60 m to $80 m market cap.....currently MCT is $18.6 m.
Why am I keen on Zinc? Because commodities move in cycles and catching things before, or as they are about to pop, has proven to be a good investment strategy. Remember that Zinc is ten times the market of Lithium.
I will leave this thought with investors. If Zinc is undergoing positive structural shift and MCT has (with exploration potential) the largest global play in town, and a management team that has experience and deal making acumen to get the best result for shareholders (and a low Market Cap), then you can see why I am so positive.
Final thought........don't forget Kyarra Cobalt play where MCT found a rock chip 4610 ppm zinc.......this one just getting started and potential for base metals play.
(20min delay)