An acute shortage is forming in the world’s 4th most in-demand metal.
It’s dual in nature.
For one, it’s been 20 years since any major discovery has been made with this commodity. Adding fuel to the fire is the fact that China is the world’s largest producer and consumer of this metal, but its environmental government agencies are absolutely cramming-down on miners, shutting operating mines, and threatening to do much more.
Even considering Australia’s production doesn’t change anything in the big picture.
Right now, zinc is experiencing a genuine, acute shortage, and it’s not going to end tomorrow. As it stands, Chinese organizations see this continuing until 2027.
The challenge, though, is to find a publicly-traded company, which operates outside of China. You see, most of China’s mining companies are either state-sponsored or private.
In other regions of the world, there are less than 8 pure-play zinc companies, but most of them are shooting in the dark, since they’re early-exploration stage companies.
I never invest, nor do I speculate with those.
My strategy is to own shares of companies, which are sitting on historical mines, have operated in the past, and are now dormant.
They were either mismanaged or couldn’t survive bust cycles. Right there, in that niche, the biggest winners are hidden.
This is the only zinc company I’m buying in today’s market.
Zinc One Resources (TSX-V: Z & US: ZZZOF) owns 2 projects in Peru, my favorite South American jurisdiction, since its mining economy is so well-developed, and they respect this profession there.
The Bongara project was an operational mine, and Zinc One is actively drilling. Concerning news flow, we’re in a great situation, since Q1 was really active.
I haven’t seen shares trade this cheap in such a long time, especially with the legendary business builder, Keith Neumeyer, who is a core shareholder and major investor of Zinc One.
I had a lengthy phone call with management, including the CEO, Jim Walchuck, who is one of the most experienced mine builders in the world; they’ve never seen this type of severe shortage before.
By 2020, Walchuck is gunning a reinstituting of the mine to produce!
The grades of this project put it in a basket with only a few other assets in history – it’s high-grade and world-class.
The stock currently trades for CAD$0.38. I am placing a 5-figure sum ordertomorrow with a 2-yr timeline.
Our team went over the list of all the near-term productions coming online in the next 3 years.
Nothing even comes close to Zinc One’s asset, which is the reason that we see the company’s current price as an anomaly.
The company’s management is meeting all the milestones it set out to do. I love seeing that.
Zinc One (TSX-V: Z & US: ZZZOF) is the most undervalued pure-play zinc stocks, using Portfolio Wealth Global’s proprietary valuation process, and I’m putting my money where my mouth is.