Sector Focus 

Zinc and grow rich?

Zinc and grow rich?

This has been a good year for zinc bulls. But the same could be said of 2016: since January of that year, the metal’s spot price has steadily climbed from just under $1,500 (£1,135) a tonne to more than $3,200 today. As the logic of commodity cycles dictates, this had to happen. At its nadir, more than a quarter of the supply of zinc was losing money on a cash basis, a financial metric that excludes the capital needed to sustain, let alone grow, operations. By the cycle’s same logic – or lack thereof – zinc miners may be about to collectively forget their recent history and kill the rally.

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