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.

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now