It will come down to how close these miners are to near-term production and how fast they can ramp up production to take advantage of higher zinc prices.
1. KZL - No sovereign risk. 25 zinc deposits and prospects (3 at production/reserve status, 6 in resource/development). High cost (72-93c) a negative but offset with a expected lower AUD & a number of nearer term production assets.
2. IBG - targeting production in 2014, with 50c/lb costs in low sovereign risk Greenland. Fantastic development partners.
3. PEM - Aus & Dominican Republic - 50% sovereign risk % or weather related risk. Low cost a plus. 55-65c.
4. TZN - Aus & Algeria - 50% sovereign risk but production in 2016/2017. (risk of missing the boat)
Zinc prices will probably peak around 2015/16. I'll be gone by then.
That's my 2 cents worth.
KZL Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
