MMG CEO Michelmore “Very Bullish” on Zinc

Mineweb reported that while Andrew Michelmore, CEO of MMG Ltd. (HKEX:1208), is bullish on copper, he is “VERY bullish on zinc,” partially due to the fact that his company’s Century zinc mine is due to stop producing in 2015.

As quoted in the market news:

Century is due to run out of open pittable ore by the end of the current year, but can probably continue processing material until Q3 2015. Beyond that production will cease said Michelmore in an answer to a direct question on the Century closure schedule. And according to Michelmore – and virtually all the zinc analysts – there is no new mine coming on line that can replace this ore. There are some much smaller operations due to start-up, but the pipeline is being further slowed by the lack of availability of funding in the current financial markets.

Meanwhile zinc demand is continuing to grow. Michelmore reckons that about 80% of the western world’s automobile sector uses zinc galvanising for rust protection and, although European car production is relatively flat, US motor output is rising again.

Click here to read the full Mineweb report.