SMRS Positioned Perfectly to Benefit from Global Zinc Supply Plummet
A recent article, titled ‘Think zinc: Miners Bet Big On Revival In Key Base Metal Market’, by Reuters (http://nnw.fm/lJ0Ap
) highlights the fact that resource companies are moving quickly to dig zinc mines as supply is becoming lower worldwide. As zinc mines are starting to run empty, prices are increasing, encouraging the start of new projects. Resource companies are feeling a sense of urgency, fearing that zinc prices will continue to rise, and new investments are continuing to pop up.
Richer mines around the world are contracting as reserves are running low, and new players are getting the chance to make a significant profit. In an interview with Reuters, Daniel Morgan, a commodities analyst from UBS, stated “There is no doubt the supply side of this market is declining and supporting the case for new mines.”
Although there are a number of variables that could affect future prices, such as China digging up more metal and the price of steel weakening, things are looking good for zinc resource companies for 2016. Mines across every continent are reopening their doors and returning to production. Supplies are especially stressed in Australia, Canada, and Ireland, and the U.S. is not far behind.
Supplies in the U.S. saw a severe drop from February to May 2016. However, the price of zinc has been on the rise since January 2016 and supplies are starting to look up, according to Zinc Investing
). The U.S. zinc supply has been facing a medium-term supply issue, as there are no large, advanced-stage development projects on the horizon.
With this in mind, Star Mountain Resources, Inc. (OTC: SMRS) recently acquired the Northern Zinc and Balmat Holdings Corporation, as well as St. Lawrence Zinc Company, LLC, including its mining operations in the Balmat mining district of St. Lawrence County, New York. The Balmat mining complex is a fully equipped and functional mine with a hoisting capacity of 4,000 tons per day. The operation is rubber tired, with a mobile mining fleet, as well as a mill capable of producing 5,000 tons of zinc concentrator per day, a tailings facility, a concentrate storage area, and rail and truck transportation infrastructure.
Since the acquisition of the mine in November 2015, SMRS has been gearing up to resume production, which couldn’t come at a better time since supplies are falling and prices are rising. The Balmat mine opens new doors of opportunity to Star Mountain Resources, which are expected to play a role in the company’s transition from a junior exploration firm to a full-fledged production operation in the near future.
For more information, visit www.starmountainresources.com