CZX information, excerpts from the July 18, 2012 “Metals Morning Note” issued by Salman Partners of Vancouver, British Columbia, Canada.
Regards,
Canada Zinc Metals Corp.
TSX.V: CZX; Frankfurt: A0RAQJ
“Zinc
Zinc demand, which continues to grow at 4.5% p.a. in the Western world, exceeds supply. The gap is expanding
We have taken the figures for supply and inventories for zinc, up to the end of May, 2012, as provided by the International Lead Zinc Study Group.
- demand in the Western world has been growing with a strong (4.5% per annum) underlying trend since 2010
- in May 2012, demand for zinc in the Western world exceeded supply by 1.6%.
The outlook for supply:
Over the next year, we suspect that the gap between zinc demand and zinc supply in the Western world is likely to widen as supply stays flat, and demand in the Western world continues to grow at 4.5% per annum. However, looking out a few years we believe that a series of mine closures are putting us in a position of growing shortages of zinc mining capacity and an absolute shortage of zinc metal.
Conclusions:
(a) Despite all the economic worries we hear, the consumption of zinc in the world is continuing to grow;
(b) Looking out a few years, zinc has a bright future, more so for miners than for smelters of zinc.
(c) Fundamental considerations (i.e. the relationships between zinc prices and zinc inventories) suggest that players on the LME are probably underestimating the future strength in zinc prices.”
The Note goes on to suggest how investors can play the imminent shortage of zinc and names Canada Zinc Metals as one of a few alternatives for the development of zinc resources.
About Canada Zinc Metals Corp. (TSX.V : CZX ; Frankfurt: A0RAQJ )
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources.
Canada Zinc Metals owns a total of 77,855 hectares in 235 mineral claims which extend northwestward from the Akie property for a distance of 140 km.
The Company has outlined a NI 43-101 compliant mineral resource at its flagship Akie property, including an indicated resource of 12.7 million tonnes grading 8.4% zinc, 1.7% lead and 13.7 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 16.3 million tonnes grading 7.4% zinc, 1.3% lead and 11.6 g/t silver (at a 5% zinc cut-off grade). Using this estimate, the deposit contains 2.35 billion pounds of zinc, 471.8 million pounds of lead and 5.6 million ounces of silver in the indicated category, and 2.65 billion pounds of zinc, 482.2 million pounds of lead and 6.1 million ounces of silver in the inferred category (at 5% zinc cut-off). The deposit remains open in all directions.
Tongling Nonferrous Metals Group and Lundin Mining are significant shareholders of the Company.
