Zinc tests new highs Friday, June 27, 2014 Zinc galvanised iron...

Zinc tests new highs

Friday, June 27, 2014

Zinc galvanised iron

Zinc rose again overnight as falling supplies and improving demand sent the metal higher.

Zinc for delivery in three months climbed 0.5% to settle at $2,190.50 a tonne on the London Metal Exchange.
This broached a 16 month high. Zinc has surged 10.5% this quarter as manufacturing and housing demand improved in the U.S.

Stockpiles fell for a fourth consecutive session, extending a slide to the lowest since December 2010.
Improving sentiment resulted as U.S. new-home sales posted the biggest one-month gain since 1992 in May.
U.S. factories received more orders for business equipment, government data showed this week.

Some ASX zinc "plays"

There a few pure zinc plays, but one Australian Stock Exchange listed company that is closely linked to the zinc price is Ironbark Zinc(ASX: IBG).

IronBark has a market cap. of around $25 million - and wholly-owns the world class Citronen zinc and base metal project that is located in Northern Greenland. Its share price has been tracking zinc higher.

The project area contains one of the world’s largest undeveloped zinc resource and currently hosts a JORC compliant resource of 71 million tonnes at 5.7% of zinc, and lead, containing 13 billion pounds of zinc and lead.

Ironbark is working towards obtaining requisite project approval via an Exploitation License (Mining License) for the project.

MacPhersons Resources' (ASX: MRP) is another zinc play with its Nimbus-Boorara silver-gold-zinc project in Western Australia, and is located just 10 kilometres east of Kalgoorlie’s superpit gold mine.

The market cap. is around $34 million.

An upcoming Bankable Feasibility Study is a key share price catalyst.

http://www.*.com.au/companies/news/55890/zinc-tests-new-highs-55890.html