SRZ.TO also has two other byproducts that are expected to be offsets to zinc. These are limestone rock and agricultural lime (ag-lime).
In addditon to the 150 million lbs of Zn, they are also expected to produce 40,000 kg of germanium and gallium annually. According to their CEO, with this volume they can become the largest producers of these rare metals allowing them to set prices. He estimated current prices of $710 per kg for germanium and $950 per kg for gallium.
According to the US Geological Survey the US imported 38,000 kgs of germanium in 2006. Total current world production is estimated to be 100,000 kgs which means SRZ's production number of 40,000 kg will be extremely significant.
Gallium is a metal that could see its use skyrocket. From the energyinvestingstrategies dot com website: "Gallium is a component of some “thin film” solar photovoltaic (PV) units. It is part of what’s known as the CIGS process - a combination of elements of which the G stands for Gallium that are painted onto plastic sheets, stuck outside somewhere, and convert sunlight to electricity far more efficiently and much more cheaply than current PV products made from silicon sheets. Many people, believe thin film is likely to be the wave of the future in PV solar."
I could not find worldwide production numbers for gallium but I believe it is less than 200,000 kgs annually.
All the numbers point to the fact that SRZ.TO has a bright future. I am holding my shares firmly as I believe the party is just getting started.
