- Nyrstar is a major zinc producer.
- Nyrstar offers a significant exposure to growing zinc price and declining EUR/USD exchange rate.
- Nyrstar seems to be correctly valued right now, but it offers an upside potential, after the zinc price starts to grow.
The zinc market is on the verge of a bull run. There are a
couple of major zinc mines that will be closed in the near future and
there is not enough of new projects to replace them. In the Q4 2015, the
Century mine in Australia will be closed. It is one of the biggest zinc
mines in the world, with annual production of more than 1 billion lb of
zinc. Its closure will only add to the current zinc market deficit. The
zinc market was in a 296,000 tonnes (653 million lb) deficit in 2014.
The biggest hurdle for a significant increase of the zinc price has
been the high levels of zinc stocks. But as shown by the chart below,
the zinc stocks are being depleted at a high pace.
http://seekingalpha.com/article/3020826-how-to-invest-in-zinc-nyrstar
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