Wednesday, July 13, 2016 12:37:48 PM
TV.TO - Buying on breakout....
Analyst consensus is around $.90 target price at $1.00 long term zinc price and zinc price has already rocketed up there and this appears to more than a 'mean reversion' rally as if you look on 5 year chart Zinc's centre-of-gravity is $0.80. Zinc went from $0.97 to $0.995 yesterday and this is when Trevali closed above upper channel line in first chart below. Have been watching Trevali since $0.47 bounce off lower channel line. Zinc price has also been moving up in last month despite LME inventories rising. LME inventories also look like they are peaking short term last couple days. Who knows...
Trevali's centre-of-gravity on 5 year chart below is $0.80 for short term move. Hopefully a lot more than a double if zinc actuall peaks at $3850/tonne ($1.75/lb) in 2018 per my post linked a few back.
Bought at $0.70 this morning for myself and family. Their newly commissioned mine Caribou has LOM grades of 6.99% zinc which is double their Peruvian Santander mine around 3.5%. Timing looks great for Trevali now and I have benefit of never being involved in missed promised from last two years for them. From what I understand of Zinc market, offtakes are typically at global prices, even if they are all with Glencore. Pricing moving in favor of miners as their is a shortage of ore so smelter margins shrinking.
Analyst consensus is around $.90 target price at $1.00 long term zinc price and zinc price has already rocketed up there and this appears to more than a 'mean reversion' rally as if you look on 5 year chart Zinc's centre-of-gravity is $0.80. Zinc went from $0.97 to $0.995 yesterday and this is when Trevali closed above upper channel line in first chart below. Have been watching Trevali since $0.47 bounce off lower channel line. Zinc price has also been moving up in last month despite LME inventories rising. LME inventories also look like they are peaking short term last couple days. Who knows...
Trevali's centre-of-gravity on 5 year chart below is $0.80 for short term move. Hopefully a lot more than a double if zinc actuall peaks at $3850/tonne ($1.75/lb) in 2018 per my post linked a few back.
Bought at $0.70 this morning for myself and family. Their newly commissioned mine Caribou has LOM grades of 6.99% zinc which is double their Peruvian Santander mine around 3.5%. Timing looks great for Trevali now and I have benefit of never being involved in missed promised from last two years for them. From what I understand of Zinc market, offtakes are typically at global prices, even if they are all with Glencore. Pricing moving in favor of miners as their is a shortage of ore so smelter margins shrinking.
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