TERRAMIN AUSTRALIA: A zinc play for a future with rising zinc prices

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Supply-demand imbalance

Zincdeficit_chart10.14 2015 will be when zinc deficit starts to grow, according to the consensus of 3 industry experts (Teck Resources, Wood Mackenzie, CRU). Mr Janes explained that an estimated 11% of current zinc production will cease over the next four years, including the second largest zinc mine in the world -- Century, in Queensland, Australia.

Investment in exploration and development of new mines has slowed down in the past decade which can be blamed largely on an under-performing zinc price trend, he said, and the the deficit in supply-demand will widen in the next 10 years.

The price of zinc had hit as high as US$4,515 a tonne in November 2006 and then slid to as low as US$1,065 a tonne in 2008 at the start of the global financial crisis.

Research house CRU Group is forecasting that the price will shoot up to US$3,800 per tonne in 2018. For more, see: Zinc could hit $4,500/mt by end of the decade: CRU

Based on estimated (and undisclosed) production costs, the Tala Hamza mine will be very profitable -- if indeed the price of zinc rises substantially in the next few years.

In that case, Terramin's stock price could turbocharge up, as the company's fortune is very much tied to the zinc mine. "We are a near-pure play on zinc," said Mr Kennedy.

For more on Terramin, visit its website.

Counter Name	Last	Change
AEM Holdings	1.840	-0.020
Best World	2.480	-
Boustead Singapore	0.950	-0.005
Broadway Ind	0.145	0.005
China Aviation Oil (S)	0.865	-0.005
China Sunsine	0.390	-0.005
ComfortDelGro	1.390	-0.010
Delfi Limited	0.875	-
Food Empire	1.120	-0.010
Fortress Minerals	0.310	-
Geo Energy Res	0.300	0.005
Hong Leong Finance	2.420	-0.010
Hongkong Land (USD)	3.420	0.010
InnoTek	0.505	-
ISDN Holdings	0.300	-0.005
ISOTeam	0.047	-
IX Biopharma	0.039	-0.004
KSH Holdings	0.245	-
Leader Env	0.049	-
Ley Choon	0.055	-0.001
Marco Polo Marine	0.068	-0.003
Mermaid Maritime	0.135	0.002
Nordic Group	0.305	-
Oxley Holdings	0.090	0.001
REX International	0.124	-
Riverstone	0.930	0.005
Southern Alliance Mining	0.480	-
Straco Corp.	0.490	-
Sunpower Group	0.230	-
The Trendlines	0.063	-
Totm Technologies	0.019	-0.002
Uni-Asia Group	0.810	-0.035
Wilmar Intl	3.160	-
Yangzijiang Shipbldg	1.750	-0.020

Counter Name

Last

Change

AEM Holdings

1.840

-0.020

Best World

2.480

Boustead Singapore

0.950

-0.005

Broadway Ind