In the final months of the year, zinc prices came down from historic highs seen in Q3. With prices still faring much better than previous years, some wonder if zinc will continue to climb or at least hold steady.
For the year, zinc prices have increased over 20 percent, which is nothing to sniff at. Most recently, the metal has been bolstered by news that major miner Glencore (LSE:GLEN) is planning a lower-than-expected increase in zinc output this year.
As investors become ever more interested in finding the best junior zinc stocks, we’ve put together a brief overview of five zinc-focused companies on the TSXV that have seen share price gains year-to-date. Read on to learn what they’ve been up to in 2017.
Data for this article was gathered on December 12, 2017 using the Globe and Mail’s market data filter; only companies with market caps above $10 million are included. If you think we’ve missed a company that should be included, please let us know in the comments.
1. Karmin Exploration (TSXV:KAR)
Current price: $1.02; year-to-date gain: 264.29 percent
Karmin Exploration is a mining and exploration company with three projects in Latin America. It owns the Aripuanã gold project in Brazil, the Cushuro gold project in Peru and it has a 30-percent stake in the Aripuanã zinc project in Brazil.
It’s been a good year for Karmin, whose share price began the year at $0.27 and peaked in November at $1.43. The junior zinc stock really began to gain traction after completing a $3.8-million private placement in February. Shortly after that, it released an updated resource estimate for Aripuanã with “significantly increased grades.” Later in the year, Karmin released a preliminary economic assessment for the asset, outlining production of 1.8 million tonnes per year over a 24-year lifespan.
2. Tinka Resources (TSXV:TK)
Current price: $0.62; year-to-date gain: 188.89 percent
Tinka Resources holds the Ayawilca zinc-indium-silver–tin–copper project in Central Peru. The company has completed a slew of drilling at the property in 2017, and its share price really began to climb in March, when it discovered a new high-grade zone at the project. Highlights included 62.4 meters grading 5.6 percent zinc from 127.5 meters depth.
One of Tinka’s more recent highlights was the November release of an updated resource estimate for Ayawilca. According to the company, it was able to more than double the project’s inferred mineral resource; it is now estimated to hold 42.7 million tonnes grading 7.3 percent zinc equivalent. Shortly after, the junior zinc stock’s share price shot up again. In its latest release, Tinka announced the discovery of a new area with “significant mineralization” at zone 3 of Ayawilca.
3. Osisko Metals (TSXV:OM)
Current price: $0.79; year-to-date gain: 166.67 percent
Osisko Metals is a zinc-focused base metals exploration and development company with projects in New Brunswick and Quebec. Osisko began the year with the purchase of the Brunswick Belt property, and in the ensuing months acquired a number of other properties.
The company changed its name midway through the year. It made some additional acquisitions around the same time, and commenting in June that it was in control of more than 40,000 hectares in New Brunswick’s Bathurst Mining District. In the second half of the year, Osisko has focused on drilling, and in December provided initial results from its Mount Fronsac North project.
4. Telson Resources (TSXV:TSN)
Current price: $0.70; year-to-date gain: 122.22 percent
Telson Resources is currently advancing two gold-silver-base metals projects in Mexico. In recent years, its focus has been the Tahuehueto project, and it plans to begin production there in 2018. The company’s other project is the Campo Morado mine, which it acquired from Nyrstar (EBR:NYR) earlier this year.
In September, Telson announced a US$5-million loan facility and offtake agreement with Trafigura Mexico. The company said at the time that the funds would allow it to recommence operations at Campo Morado, and by October it had restarted operations for production at the mine. Also in October, Telson signed a “term sheet for a loan facility and offtake agreement with Trafigura for up to US$15 million to finalize mine construction at Tahuehueto.”
5. Hannan Metals (TSXV:HAN)
Current price: $0.27; year-to-date gain: 22.73 percent
Exploration company Hannan Metals holds the County Clare zinc-lead-silver-copper project in Ireland, and is focused on the Kilbricken discovery at the property. The company kicked off the year by closing of the acquisition of County Clare, closing a private placement and changing its name.
In May, Hannan began drilling at Kilbricken, and by June it had completed its first step-out drill hole at the site. It provided a maiden resource estimate for Kilbricken in July, and continued to drill into the fall. Towards the end of the year, Hannan reported continued success outside the resource area at Kilbricken, with highlights including 8.4 meters at 8 percent zinc equivalent.
Which junior zinc stocks did you pick this year? We’d love to hear your thoughts in the comments.
The data for this article was retrieved on December 12, 2017 using the Globe and Mail’s market data filter. Only TSXV-listed zinc companies with market capitalizations greater than $10 million are included.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Hannan Metals and Telson Resources are clients of the Investing News Network. This article is not paid-for content.