A
recent article, titled ‘Think zinc: Miners Bet Big On Revival In Key Base Metal
Market’, by Reuters (http://nnw.fm/lJ0Ap) highlights the fact that resource
companies are moving quickly to dig zinc mines as supply is becoming lower
worldwide. As zinc mines are starting to run empty, prices are increasing,
encouraging the start of new projects. Resource companies are feeling a sense
of urgency, fearing that zinc prices will continue to rise, and new investments
are continuing to pop up.
Richer
mines around the world are contracting as reserves are running low, and new
players are getting the chance to make a significant profit. In an interview
with Reuters, Daniel Morgan, a commodities analyst from UBS, stated “There is
no doubt the supply side of this market is declining and supporting the case
for new mines.”
Although
there are a number of variables that could affect future prices, such as China
digging up more metal and the price of steel weakening, things are looking good
for zinc resource companies for 2016. Mines across every continent are
reopening their doors and returning to production. Supplies are especially
stressed in Australia, Canada, and Ireland, and the U.S. is not far behind.
Supplies
in the U.S. saw a severe drop from February to May 2016. However, the price of
zinc has been on the rise since January 2016 and supplies are starting to look
up, according to Zinc Investing (http://nnw.fm/AXbo2). The U.S. zinc supply has
been facing a medium-term supply issue, as there are no large, advanced-stage
development projects on the horizon.
With
this in mind, Star Mountain Resources, Inc. (OTC: SMRS) recently acquired the
Northern Zinc and Balmat Holdings Corporation, as well as St. Lawrence Zinc
Company, LLC, including its mining operations in the Balmat mining district of
St. Lawrence County, New York. The Balmat mining complex is a fully equipped
and functional mine with a hoisting capacity of 4,000 tons per day. The
operation is rubber tired, with a mobile mining fleet, as well as a mill
capable of producing 5,000 tons of zinc concentrator per day, a tailings
facility, a concentrate storage area, and rail and truck transportation
infrastructure.
Since
the acquisition of the mine in November 2015, SMRS has been gearing up to
resume production, which couldn’t come at a better time since supplies are
falling and prices are rising. The Balmat mine opens new doors of opportunity
to Star Mountain Resources, which are expected to play a role in the company’s
transition from a junior exploration firm to a full-fledged production
operation in the near future.
For
more information, visit www.starmountainresources.com
About QualityStocks
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
Sign up for “The QualityStocks Daily Newsletter” at www.QualityStocks.net
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks Daily Videos http://videocharts.qualitystocks.net
The Quality Stocks “Ones to Watch” http://gotstocks.qualitystocks.net
Please see disclaimer on the QualityStocks website: http://disclaimer.qualitystocks.net
No comments:
Post a Comment