The Arizona-based junior exploration company, Star Mountain
Resources, Inc. (OTC: SMRS), is only interested in acquiring high-potential
mining resources that it will turn into producing assets. The company focuses
on base and precious metals in North America and has operations in New York and
Utah. Led by a knowledgeable management team, Star Mountain Resources can see
potential where others may not. This vision has led the company on an upward
journey of revenue increases and shareholder confidence through its Balmat mine
acquisition.
The Balmat zinc mine in upstate New York shut down
operations in 2008, but when companies approached its controlling company,
Hudbay Minerals, for purchase, sales always seemed to fall through. Back then,
zinc was not a “hot commodity” and was seen as a poor investment. However, in
November 2015, Star Mountain Resources closed a deal with Hudbay Minerals and
finally had the mine in its possession. The company’s chief operating officer,
Mark Osterberg, stated at the time that, “The mining cycle is down, which means
that assets like Balmat are available at bargain prices. So we think we bought
the property at a very good price and we believe the commodity prices are going
to come back up.”
Osterberg and Star Mountain Resources couldn’t have been
more correct. Since January, zinc value has increased more than 20% from a
six-year low. The deficit of 440,000 metric tons this year has caused prices to
increase with demand. Furthermore, Goldman-Sachs has predicted 12-month zinc
prices at $1,800 a ton. Star Mountain Resources recently reported that their
mine has a reserve estimate of 585,000 tons of 9.2% grade zinc that could
generate over $80 million over the course of 2.5 years. What was deemed a risky
investment in 2008 now rewards a company that saw its future potential.
Spearheading Star Mountain Resources is an impressive,
forward-thinking team consisting of CEO Joseph Marchal, COO Mark Osterberg, CFO
Wayne Rich, VP Thomas Bidgood, operations manager John Heinzig, and site manager
Ryan Schermerhorn. Plus, the company recruits local experts at each operation
site to maintain strong community ties while gaining intuitive workers.
Through expert knowledge, due diligence, and experience,
Star Mountain Resources chooses acquisitions that will become profitable for
both shareholders and the company. The ability to foresee high-potential
producing assets is a trait that marks a successful company.
For more information, visit www.starmountainresources.com
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