RXL 1.61% 15.8¢ rox resources limited

Both Teck and Glencore have debt to get rid of, one feather in...

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  1. 7,936 Posts.
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    Both Teck and Glencore have debt to get rid of, one feather in their cap is strong leverage to higher zinc prices, in part due to their cut backs and going slow on any new projects and expansions. Why would either party really want to talk up this discovery or fast track to production when zinc prices are still weak? They both have other development options which are likely faster and cheaper if and when they want to increase zinc production. Further, Teena looks like it extends onto the neighbouring leases anyway which weakens any negiotation between the two parties. So reckon RXL will do well short term however i can see it being stuck in limbo between two majors in the long term.
    Last edited by FiendishRedbeard: 01/06/16
 
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