zinc - who are oz coys?, page-18

re: zinc - or nickel? tibbs i wouldnt touch nickel any unhedged zinc miner is a buy.....

i'm a big fan of CBH , if this zinc price stays were it is for the next two years,and even go up (i'm predicting $2 easy by xmas) then cbh will be $2 , best growth story going around with a quick turn around for massive expansion to benefit from these zinc prices...check this out cbh will be the 3rd biggest producer of zinc behind xstrata and zfx..buy late 2007.....


SYDNEY (Dow Jones)--Buoyed by shrinking global zinc stocks, Australia's CBH
Resources Ltd. (CBH.AU) expects to decide in the coming months whether to build two new
mines.
The additional production could hit the chronically tight global zinc market in the
second half of next year, Managing Director Robert Besley told Dow Jones Newswires.
"We're very keen to push ahead because we think we've still got quite a
part of this cycle yet to catch," he said in an interview Wednesday.
In Western Australia's Pilbara region, CBH is nearing completion of a feasibility
study into the Sulphur Springs open pit mine, which would produce 75,000 metric tons a
year of zinc concentrates at 53% metal and 65,000 tons of copper concentrates at 25%.
Besley said the company expects to announce a decision in the next month or two on
whether to spend up to US$100 million to build the mine and processing plant and start
producing toward the end of 2007.
In zinc equivalent terms Sulphur Springs would almost match output at the
company's only current operating asset, the Endeavour zinc and lead mine in central
New South Wales state.
"It's a good sized operation which will go close to doubling our
revenue," Besley said.
Financing options include some equity raising and cash flow from Endeavour, which
includes an upcoming A$30 million payment from Coeur D'Alene Mines Corp. (CDE) for
the mine's contained silver, as well as arrangements with off-takers.
Sulphur Springs' logical off-taker, at least for the project's zinc
concentrates, is CBH's 24.8% shareholder Toho Zinc Co. Ltd. (5707.TO) of Japan,
although the Australian company doesn't rule out other customers just yet.
"Toho are quite keen to get the concentrates," Besley said. "But
we'll be talking to a number of parties to find out what's best for all
shareholders."

Broken Hill Decision Also Imminent

At the same time, CBH is weighing up options at its Broken Hill zinc, lead and silver
project, also in NSW state.
"We'll probably be doing something with that very shortly in terms of our
direction there...it'll probably be the beginning of a staged development so that
will give us a third operation."
As a Brownfield project Broken Hill already has infrastructure in place, as well as a
nearby smelter, and could start producing after an estimated 12 months of decline work.
Annual throughput is estimated at 750,000 tons of ore.
Broken Hill's relatively short lead time means the two new mines could come on
stream around the same time in the second half of 2007.
"So by 2008 we should be getting close to 300,000 tons a year of zinc concentrate
plus maybe 70,000 tons of copper and 100,000 tons of lead" making CBH
Australia's third largest zinc miner after Zinifex Ltd. (ZFX.AU) and Xstrata PLC
(XTA.LN), he said.
The increased scale and removal of the company's single-mine status should drive
its share price "well north of A$1," Besley said.
CBH shares were up 3 cents at 44 cents late Wednesday, up from 27 cents just two weeks
ago and 16 cents in October after the company suffered a "self mining" incident
at Endeavour from which it is still recovering.
Besley said Endeavour is on track to meet at least 60% of contracted deliveries in the
current quarter, after committing to only 30% in the previous quarter, before returning
to normal production in the second half.
Endeavour's setbacks, however, are part of the slower-than-expected supply-side
response to rising demand that is helping to push global metal prices to record levels
and provide a supportive setting for developing new projects such as Sulphur Springs.
The price of zinc, and copper for that matter, has rallied to a series of all-time
highs in recent weeks, bringing year-to-date gains to 40% as investors hone in on falling
warehouse stocks against strong China-led demand and tight mine supply.
"Analysts are looking at high prices continuing for several years for zinc because
there just aren't any new projects coming on stream and many of those that are
waiting in the wings have got several years to get into production."
"Zinc stocks have been coming down by 3,000 to 4,000 tons a day and by the end of
the year they're going to be very, very tight - and that's going to drive a
real scramble for zinc concentrates," he said