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Len - LME Zinc Price/Inventory History Graph

Len,

The London Metal Exchange (LME) publishes daily inventory levels of most base metals and their prices. The graph shows the relationship of a declining zinc inventory (the blue and gray shaded area) and the rising zinc price is illustrated in red. The "hidden" inventory is the gray shaded area stacked on top of the LME reported inventory in blue. When prices were low, producers failed to report inventories in an attempt to support the price. The recent draw down is much more dramatic when you take into consideration the "hidden" zinc inventory.

In my opinion, the zinc market is headed for a short squeeze! Additional mines take years to bring on stream and the depressed prices of the past 10 years kept CEO's from making new investments in zinc mines. Eurozinc (EZM) is one of the few companies that has a chance to bring new concentrates (ore) to market in short order.