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The driver for the price jump is tightness in the market.
London Metal Exchange (LME) stocks are low at just 99,900
tonnes and it's the same story in Shanghai where inventories sit
at 53,500 tonnes.
The price also benefited after the International Lead and Zinc
Study Group made revisions to its supply-demand forecasts last
week. The group increased its expected 2018 global supply deficit
to 322,000 tonnes from 263,000 tonnes forecast earlier in the year.
The mineral exploration sector gets knocked sometimes for
how often projects get recycled. Go through a few metals cycles
and you will see some of the same projects crop up time and
again. Each time, they are good enough to raise some money and
interest...but not good enough to make real progress.
With Duncan Lake we're not talking about spit-polishing a
problematic project; what we're talking about here – unlocking a
hidden asset – is something different. This is a good project, good
enough that a major has been holding onto it and advancing it
slowly for years. In doing so, they have kept the asset hidden from
view. Now, with the right team and exploration vehicle back to
unlock these assets, the opportunity is very real.
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MINING
