A look at the top producers of the base metal, including Trevali Mining and Teck Resources.
Zinc was the best performing LME metal in 2016, rising 60 percent supported by concerns about supply shortages due to major mines closures and production cuts. In 2017, the base metal has continued its positive momentum and analyst forecast another strong year ahead.
Banks are also optimistic, with Barclays expecting tightness in the zinc market to continue and JP Morgan forecasting the zinc bull rally to extend into the first half of the year .
That said, the Investing News Network (INN) looked at the top zinc producing companies on the TSX with a market cap of at least $50 million.
Trevali Mining (TSX:TV)
Market cap: 473.87 million
Trevali is a zinc-focused, base metals mining company with two commercially producing operations.
The Company is actively producing zinc and lead-silver concentrates from its 2,000-tonne-per-day Santander mine in Peru and its 3,000-tonne-per-day Caribou mine in the Bathurst Mining Camp of northern New Brunswick.
In the first nine months of 2016, the company reported reaching 750,858 tonnes mined in total. Most recently, they released their preliminary production results for the fourth quarter of 2016, stating they had a record production of 415,523 tonnes mined compared to 173,283 tonnes mined in the same period in 2015.
Trevali’s shares have gained 7.08 percent year-to-date, and are currently at $1.21.
Market cap: 18.19 billion
Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy.
The Company produces both refined zinc and zinc concentrates through its mining operations and metallurgical operations at Trail. Its principal markets for refined zinc are North America and Asia while for zinc concentrates are Asia and Europe.
It produces mined zinc, primarily from its Red Dog mine in Alaska, the Antamina mine in northern Peru and its Pend Oreille mine in Washington State. In the first nine months of 2016, Teck’s production reached a total of 510,000 tonnes of zinc in concentrates and 231,000 tonnes of refined zinc.
The company recently announced that it will acquire 100 percent of the Teena/Reward zinc project from Rox Resources (ASX:RXL). Shares of the company are currently sitting at $31.32, gaining over 16 percent year-to-date.
Hudbay Minerals (TSX:HBM)
Market cap: 2.09 billion
Next on the list is Hudbay Minerals, a mining company with operations, development properties and exploration activities across the Americas principally focused on the discovery, production and marketing of base and precious metals.
The company’s total zinc concentrate production was 110,582 tonnes, exceeding their guidance for 2016. For this year, Hubday expects production to increase by approximately 25 percent supported by the ramp-up of their Lalor mine.
Year-to-date, shares of the company have increased over 17 percent, and are currently at $9.05.
Nevsun Resources (TSX:NSU)
Market cap: 1.27 billion
Last but not least on the list of zinc producing companies is Nevsun, a mid-tier base metals company. Nevsun owns 60 percent of the high grade Bisha Mine in Eritrea, a high grade open pit copper-zinc mine, and is also developing the Timok copper-gold project.
The project was completed under budget and started commercial production in October. The company reports total zinc in concentrate production of 40,900 tonnes in 2016.
Shares of the company have gained 2.65 percent and are sitting at $4.26.
Other Zinc-focused Companies
There are other companies on the TSX worth mentioning as, even though they are not producing the base metal, they are focused on the exploration and development of zinc.
The company is focused on the exploration and development of it 100 percent owned Hermosa Project located in Santa Cruz County, Arizona. They recently reported further drilling reports from the project. Shares of the company have gained 8.78 percent year-to-date, currently at $2.67.
- Canadian Zinc (TSX:CZN): Market cap: 68.89 million.
The company is aiming to bring their 100 percent owned Prairie Creek mine in the Northwest Territories into production. They have recently started mineral optimization programs on the mine together with SGS Canada. Shares of the company are currently at $0.25, a 19.05 percent gain year-to-date.
- Heron Resources (TSX:HER): Market cap: 58.10 million.
The company is is engaged in the base and precious metal mineral exploration and development in Australia through sole funded and joint venture activities. Heron’s primary focus is the development of its 100% owned, high grade Woodlawn Zinc-Copper Project in Sydney. Shares of the company have gained over 22 percent year-to-date, and are currently at $0.135.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Trevali Mining and Arizona Mining are clients of the Investing News Network. This article is not paid-for content.