Who cares to predict how high zinc prices will go? Inventories continue to drop on a daily basis, and in reality there already are virtually no inventories left in any of LME's 25 storage warehouses except New Orleans and a little in Singapore (see my post #56454). I'm beginning to believe that inventories are walking out of New Orleans as fast as they can get them cleaned up for shipping (damaged from Katrina storm.)
There is little new mine production coming until the second half of next year. I think we may see $3 zinc sometime within the next six months. BWLRF remains my favorite. They have lagged the others (although playing catch up now) due to production problems at their Myra Falls mine (they are adding ventilation shafts which should correct that problem). Langlois is opening up next year which will dramatically increase their production. In terms of active smallcap miners and zinc reserves vs mkt cap, Breakwater is probably the strongest play out there, IMO.
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