Star Mountain Resources, Inc.
(OTC: SMRS) is a microcap mining company that builds shareholder value by way
of acquiring and developing mineral properties and turning them into major
producing mines. SMRS’s growth plan uses this acquisition model as its guide.
Currently, Star Mountain Resources is busy developing operations to restart its
Balmat zinc mining operation in St. Lawrence County, New York. Operations are
aimed at transforming the company into an active mining producer rather than a
junior explorer. In the fourth quarter of 2015, the company acquired Northern
Zinc, LLC, a private company, and closed on the acquisition of the Balmat
Holding Corporation from Hudbay Minerals. The deal gave SMRS access to this
quality-rich mineral asset.
With zinc showing signs of a
value-based comeback, this positive trend appears to be on course to recover
most of the 20% loss zinc suffered in 2015. Last year, metal was down 26% due
in large part to China’s economic slowdown, which, in turn, hampered demand. As
for 2016, zinc is leading the base metal sector, because mine depletion and
production cutbacks are tightening supply and therefore boosting prices. With
zinc gaining 6.8% on the London Minerals Exchange in February alone, Goldman
Sachs predicts that, in 12 months, the price of zinc will be $1,800 a ton.
A Goldman analyst noted in a
recent report, “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.”
Star Mountain Resources sets and upholds
the highest ethical standards and business practices. The company’s dealings
with employees, governments, stakeholders and communities are open, honest and
transparent. SMRS is a company that’s ‘passionate about continuous improvement’
while identifying and executing on operational practices that drive innovation,
speed to market and cost efficiency.
For more information, visit
www.starmountainresources.com
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