SAN FRANCISCO, CA--(Marketwired - April 19, 2016) - The outlook for zinc appears bullish, says Stefan Ioannou of Haywood Securities, spearheaded by mine closures, dwindling production and the dearth of replacement projects. This looming supply gap could mean increased zinc prices by the end of the year, explains Ioannou in this interview with The Gold Report, a prospect that would bode well for one of the few pure-play zinc producers, as well as for an Australian explorer that may be on the cusp of a world-class discovery.
Included in this interview is: Trevali Mining Corp. (
The Gold Report: Many analysts are cautiously optimistic about the price of zinc. Are you?
Stefan Ioannou: Yes, we definitely have a good medium- to longer-term outlook for the metal, probably sooner to the upside than for other base metals and commodities. A number of key larger-scale mines have shut down over the last few years. The most recent one was the Century mine in Australia, which produced about 4% of the world's zinc supply. It shipped its last concentrate early this year. In addition, Glencore International Plc, Nyrstar and others have made significant production cutbacks. In all, over 10% of world production has come off, so there's definitely a supply issue looming.
Looking to the flip side of the equation -- new mines coming on to replace that lost production -- there really haven't been any major discoveries or developments in recent times. So we have north of 10% coming off and nowhere near that in new production coming on. A fundamental supply gap is forming, which stands to materialize by late this year, as inventory levels are drawn down to critical levels. Significantly lower year-over-year and spot zinc concentrate treatment charges arguably provide a…
Continue reading this interview: Looming Zinc Supply Shortage Good News for Producers and Explorers: Stefan Ioannou
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Trevali Mining Corp. is a sponsor of Streetwise Reports. Stefan Ioannou had final approval of the content of the interview and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Stefan Ioannou and not of The Gold Report or its officers. The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
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