Star Mountain Resources, Inc.
(OTC: SMRS), a microcap mining company, focuses its efforts on acquiring
mineral properties and then developing them into major producing mines. The
company plans to continue its upward growth through these acquisitions. Star Mountain
Resources is currently developing operations to restart its Balmat zinc mining
operation in St. Lawrence County, New York. This venture would turn the company
into an active mining producer rather than a junior explorer. In November 2015,
the company acquired Northern Zinc, LLC, a private company, and closed on the
acquisition of the Balmat Holding Corporation from Hudbay Minerals, which gave
Star Mountain Resources access to the Balmat zinc mine, a high-quality mineral
asset.
According to Goldman Sachs (NYSE:
GS), zinc is making a comeback by rallying 18% of mid-January lows at around
$1,445. The mineral is making back most of the 20% loss it suffered in 2015.
Last year, metal slumped 26% with China’s economic slowdown limiting the demand
for metals. However, so far this year, zinc has the strongest “bull case” of
all the base metals, because mine depletion and production cutbacks will
tighten the supply even more, thus driving up prices. With zinc gaining 6.8% on
the London Minerals Exchange in February alone, Goldman Sachs predicts that in
twelve months the price of zinc will be $1,800 a ton.
In a recent report, Goldman Sachs
analysts stated, “Against the backdrop of still significant short metals
positioning (particularly copper and aluminum), we reiterate that the recent
stabilization of the GS China Metals Consumption Index, the upcoming seasonal
improvement in metals demand (post Chinese New Year), China State stockpiling,
and potential further capacity closures could be catalysts for a short covering
rally near term.”
The ICBC Standard Bank expects the
global surplus of zinc to be greatly diminished this year, resulting in a
deficit for 2017. This deficit in zinc will cause higher prices within the
global metal market due to lack of substantial resources. These escalating zinc
prices bode well for Star Mountain Resources as the company approaches the
recommencement of mining operations at the Balmat zinc mine.
For more information, visit
www.starmountainresources.com
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