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	2.360	0.010
Best World	2.470	0.010
Boustead Singapore	0.965	0.005
Broadway Ind	0.129	0.001
China Aviation Oil (S)	0.920	0.015
China Sunsine	0.415	0.005
ComfortDelGro	1.500	0.010
Delfi Limited	0.905	0.005
Food Empire	1.270	0.020
Fortress Minerals	0.310	-
Geo Energy Res	0.310	-
Hong Leong Finance	2.490	-0.010
Hongkong Land (USD)	3.070	0.040
InnoTek	0.525	-
ISDN Holdings	0.310	0.005
ISOTeam	0.041	-0.002
IX Biopharma	0.043	-
KSH Holdings	0.250	-
Leader Env	0.051	0.001
Ley Choon	0.046	0.003
Marco Polo Marine	0.066	0.001
Mermaid Maritime	0.141	0.003
Nordic Group	0.340	-
Oxley Holdings	0.089	-
REX International	0.137	0.001
Riverstone	0.820	0.020
Southern Alliance Mining	0.445	0.015
Straco Corp.	0.500	0.010
Sunpower Group	0.210	0.010
The Trendlines	0.069	-
Totm Technologies	0.022	-
Uni-Asia Group	0.825	-0.010
Wilmar Intl	3.480	0.030
Yangzijiang Shipbldg	1.780	0.060

Counter Name

Last

Change

AEM Holdings

2.360

0.010

Best World

2.470

0.010

Boustead Singapore

0.965

0.005