Zinc Producers

In addition to GMO, this article describes other publicly traded zinc producers.

One key to finding stocks with the highest appreciation potential is to identify a metal largely off investor’s radar screens on the verge of a major move up. The other key is to identify companies that are rapidly increasing production of that metal. We will first focus on the next base metal likely to move up and then review three miners that are significantly increasing production over the next 12 months.

The next base metal that is likely to move up strongly this year is Zinc. Fundamentals for zinc continue to be very strong. A major Zinc miner, Xstrata, has said they expect strong demand through 2013. The primary reason for strong demand is zinc’s use as a means to protect steel from corrosion. Galvanizing of steel (applying a zinc coating) is the largest use of zinc. Galvanized steel is critical for the development of infrastructure. India and China are rapidly growing, building infrastructure for their booming economies.


Miners covered in the article:

Acadian Gold (ADGLF.PK) 1.18

Blue Note (BNMFF.PK) 0.60
This Company has refurbished an old mine they bought from Breakwater Resources. They are anticipating production start up next month with a ramp up to a staggering 100 million pounds of Zinc and of 40 million pounds Lead per year. Earnings and cash flow should be huge relative to the capitalization of the company.

Breakwater Resources (BWLRF.OB) 2.56
Breakwater operates several mines in North and South America. According to their most recent presentation they are the highest leveraged company to the price of Zinc. The majority of their revenue does come from Zinc but they also have an impressive repertoire of production from Copper, Gold, Lead and Silver. Breakwater produces several hundred million pounds of zinc and they are bringing two more zinc producing mines online in the next few months.