"The zinc market has been affected by fresh reports that Glencore is serious about closing its Portovesme zinc plant in Sardinia, and that Canadian miner Breakwater may not be able to meet a debt repayment scheduled for January."
Looks like there is more trouble ahead for high cost and over leveraged producers. That's good news for Kagara followers (KZL) as Kagara is set to become the world's lowest cost producer.
These developments should further cap supply of zinc and be positive for the Cash Price. Zinc for three month delivery closed on Friday at US$801.50 a tonne. Next move should test the US$810 mark.
KZL Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
