CZL 0.00% 4.8¢ consolidated zinc limited

Yes there is a mis-match between the CZL share price and the...

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  1. 1,378 Posts.
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    Yes there is a mis-match between the CZL share price and the rising price of Zinc. Without trespassing too much into cross-promotion there are no easy answers to get Zn exposure on the ASX, the few companies that are out there are in early stages and may miss the current window of good Zn prices, fortunately I got into RVR and they are finally being re-rated, a lot of people have already seen a good run with NCZ (based on existing Century Mine infrastructure) but I think NCZ may be fully valued now, possibly even over-valued.

    A lot of the other 'hopefuls' all have their own issues because no-one has been looking for base metal Zinc and Lead deposits for decades, so they have problems of being in weird or isolated, exotic locations and jurisdictions (IBG, EMX), very early days exploration (PEX, PNX, OVR & VXR), or small brownfields projects that have to be brought back online with the attendant technical risks and long 'orphan' share price periods as they come back into production (HRR hasn't yet but RVR has just achieved this) - and other technical issues with large but very deep and high cost greenfields projects (such as MCT).

    Going back to CZL - I wouldn't let the Mexican jurisdiction worry you too much, Mexico is actually a reasonable jurisdiction to operate mines in, its just the high grade but small size of the orebody plus the cost of getting the small plant back into production that would be holding back CZL at the moment. If they get into production - in my opinion they will need to do it quickly, as Zinc price booms are notoriously difficult to predict in peaks and the length of the high price periods.

    Don't forget there are other non-ASX sources that can come into the market - big guys like Glencore, MMG, Teck, Vedanta etc and don't forget the other non-ASX listed sources of production like Perilya re-opening their North Broken Hill mine for instance.

    This thread here has a good summary but obviously the price of Zinc has gone up since this thread was started:

    https://hotcopper.com.au/threads/asx-zinc-players-list.2782816/#.WfUfw5IUnIU
 
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