Replies to post #5921 on Value Microcaps Junior Miners

[MontyHigh]

Red Dog shipments of Zinc...

http://www.kitcometals.com/charts/zinc_historical_large.html#lmestocks_5years

Well, when I look at the historical chart, zinc inventories were falling like a rock this time of year 2005 and were falling up until Dec in 2006. When the inventory levels started back up in Dec 2006 the price of zinc started falling hard.

So, something has changed in the supply/demand balance since 2005 and rising inventory levels have been consistently bad for zinc prices since then.

I heard somewhere that zinc mines are easier to open quickly than other mines because zinc deposits are plentiful and relatively small so the permitting process is easier to manage and the project construction is not that long. Don't if that is true but it could explain why a wave of supply might hit zinc before Cu.

Monty