I have followed the zinc market for a few years now.
Zinc is one of the best performing metals this year and I mentioned it as my favorite sector earlier this year here.
Recently a sell off in small zinc producer has caught my attention and I have been buying shares.
The company is Pasinex Resources and trades on the CSE under the symbol PSE.
A recent interview published yesterday (December 5th) with the CEO can be watched below.
I have been buying shares from 20 to 25 cents picking up a nice sized position with an average cost base of 23.6 cents.
The zinc market continues to look strong going into 2018. Inventories on the LME continue to decline and will soon be under 200kt.
From Scotia Scoop November 27, 2017:
Current Zn refined inventories are now well below the 2000-2015 average of 22 days of inventory (peak of 44 days in 2012; trough of 3 days in 2006). Back in early October, Orest anticipated zinc inventories to fall to only 9 days by year-end (we’ve arrived at this point one month early!), with all visible stocks theoretically depleted during 2018 (see below). Importantly, Orest stresses that our estimates conservatively include the expected release of 500,000 tonnes of hidden stocks this year (yet to be seen) and another 200,000 tonnes next year (according to Teck there were ~700,000 tonnes of hidden stocks remaining as at mid-year, down from a cyclical peak of ~1.2 million tonnes). Recall that historically, zinc prices have tended to squeeze to the upside (i.e., go parabolic) when total visible stocks fall below 10 days. Finally, Scotia Mining Sales notes that cancelled warrants for LME zinc inventory (i.e., metal booked to leave the warehouse) remain at 25% of total stocks.
Pasinex will be hosting a live webinar discussing the company tomorrow.
Pasinex: 62% Profit margin in 2017 & NI 43-101
Thu, Dec 7, 2017 9:00 AM – 10:00 AM PST
To join the webinar go here – https://applauncher.gotowebinar.com/#notStarted/2954222104774745347/en_US
The name of the game is buy low and sell high.
Please do your own due diligence.