I also agree with
@Michaeljob views. I did my own calcs and came to the same view, especially if zinc prices stay at current levels (i.e. around US$2400 per tonne).
Seems varying opinions as to where zinc prices are heading but the latest developments in the US/China tick for tack tariff retributions are probably a positive for CZL IMO given where it is (Mexico and close to the US). I have been reading these articles:
https://investingnews.com/daily/res...-investing/zinc-investing/zinc-price-drivers/
https://do not advertise external s...lead-outlook-set-to-improve-analysts-say.html
https://knoema.com/ftmgyvg/zinc-prices-forecast-long-term-2018-to-2030-data-and-charts
https://www.mining-journal.com/base-metals/news/1341434/zinc-outlook-fails-to-inspire
https://agmetalminer.com/2018/07/02/dropping-zinc-prices-get-a-boost-from-chinese-smelter-cuts/
https://www.cnbc.com/2018/06/29/reu...-plan-to-boost-zinc-prices-may-fall-flat.html
A bit of a mixed bag based on the above article coverage, but I decided earlier this week to buy a small stake here as well given CZL has moved to mining and looks like it has good FA. Will do far more research, but given zincs role, particularly as an anti-rust thin coat in steel through a galvinising thin layer of zinc , and its use as an alloy, and as a result the varying uses there, I suspect the outlook for zinc is ok. It does boil down though to the extent of so-called supply overhang but production cuts are likely to stabilise prices in any event IMO. But time will tell.
Anyway, I found this graph interesting, refer:
http://www.kitcometals.com/charts/zinc_historical_large.html, simply on the basis it is showing a 'long-term' drop in stockpiles of late so the overhang is really how you interpret the data going forward. Despite there been an increase in inventory over the last few months the key though is whether further supply shutdowns/mine closures, especially in China, will result in inventory falling again etc. As I said worth a punt here, especially given the US/China tick for tack retributions and where CLZ is producing. But only invest what you are willing to risk given in part the uncertain zinc price outlook but hence the risk/reward equation.
Anyway, my numbers for CZL are below and they correspond to what is already has been posted. Some slight differences but likley to be assumptions only based, or I have stuffed the calcs up!!
All IMO IMO IMO IMO
View attachment 1307153
I'm new to this though, can anyway point to similar examples of where explorer has gone to producer and shown similar SP growth? (good to see a small gap forming in the depth chart this morning)
