Zinc got off to a rough start in 2016, but it ended the year as the best-performing metal on the LME. Many market watchers are optimistic about the base metal‘s prospects in 2017, and John Kaiser of Kaiser Research is one of them.
In the video interview above, he explains zinc’s supply and demand dynamics, noting that in the past there’s been little interest in bringing new zinc deposits online because China has been such a dominant producer. “Because China has always increased supply to meet any growth in demand, the price has never really gone up, so nothing has been developed,” he says.
Now, however, Chinese zinc production is running into problems. According to Kaiser, China produces the metal from small deposits, “many of them very polluting” — as the country continues to crack down on pollution, it will become more difficult for it to produce as much zinc as it has in the past. “That, I think, will help zinc go a lot higher than people expect,” he believes.
In light of those circumstances, Kaiser sees zinc optionality plays as “really interesting.” InZinc Mining (TSXV:IZN), which is focused on its Utah-based West Desert project, is one of his favorites. “This is almost like a hybrid optionality type of system where we know this is here, we know at what price this is worth developing, but is there a lot more,” he says.
Watch the video for more of Kaiser’s thoughts on InZinc Mining and the zinc market as a whole. He also discusses Arizona Mining (TSX:AZ), which was one of his picks last year. You can click the links below to go directly to different parts of the interview:
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in contributed article. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Arizona Mining is a client of the Investing News Network. This article is not paid-for content.
John Kaiser owns shares of InZinc Mining.
Related reading:
John Kaiser’s Favorite Gold Juniors
John Kaiser on the Uranium Project that Could Become a Major New Discovery
John Kaiser: Demand for Large, Gem-quality Diamonds is Here to Stay
Why John Kaiser Likes Copper-Gold Optionality Plays
The post John Kaiser: The Zinc Price Will Go a Lot Higher Than People Expect appeared first on Investing News Network.