Mine Closures Could Cause Zinc Prices to Soar
Read Our Special Alert on This Junior Who is Sitting on $9 Billion in Zinc (EQ)... and Counting
- In less than 12 months, this junior is looking to more than double the resource of their current 40 million tons, which will drive up dramatically their $9 billion in zinc already established.
- The former co-president of Barrick Gold (the largest gold producer in the world) just signed on to this management team as the President and CEO!
- With resource stocks in a bull market, this could be the perfect lottery ticket play for early investors to expose themselves to the convergence of a large deposit, all-star management, and upside from major zinc supply deficits!
My Number One Zinc Sector Pick of 2016:
Arizona Mining Inc. (TSXV: AZ & US: WLDVF)
The zinc supply is facing a massive deficit. Mine closures are certainly putting major upward pressure on this metal. Right now, China has temporarily shut down 26 of its mines until June of 2017. In 2015, Europe saw its 2nd-largest zinc mine, Lisheen, shut down, along with Australia's largest zinc mine, Century, which has taken massive amounts of supply off the market, along with Glencore curtailments.
In late 2015, Nyrstar, the world’s largest zinc producer, said it would consider reducing its zinc concentrate output by a further 400,000 tons per year! China, who is the largest importer of silver and who has been increasing its imports of zinc due to dwindling domestic supply, has seen imports rise 48% this year.
The fundamentals for zinc are extremely favorable, given the expected supply deficit of 420,000 tons in 2016,
widening to 500,000 tons for the following two years.
Zinc, right now, is like a beach ball being held under water, and that is exactly the reason why RBC is estimating that by 2019, it will be 50% higher, at $1.50 per pound, than where it is now, at around $1.00.
This has certainly caught my attention, but more importantly, it has caught the attention of Barrick Gold's (largest gold producer in the world) now former co-president, Jim Gowans, who has turned his attention to zinc -- and more importantly, Arizona Mining...
After analyzing the incredible resource AZ is sitting on, and the convergence of fundamentals between the supply/demand statistics and timing in the market, he left Barrick Gold and took on Arizona Mining as its new President and CEO.
Talk about a real endorsement for this incredible mining stock...
In a world that is screaming for more zinc, Arizona Mining is sitting on an asset with 40 million tons at 11%. This isn't just low-grade zinc, either. Most good deposits are 5-7% grades, and their 40 million tons are at 11%, double what would be considered "good" when evaluating a zinc deposit.
According to management, by as early as the first quarter of 2017, Arizona Mining could be looking to more than double their already sizeable 40 million tons, with targets to be at 80-100 million tons in the near future, a move that will take this company from great, to an anomaly.
As the company continues to expand, some of the grades they are seeing are coming in as high as 47%, which will mean substantially more zinc per ton, it will be cheaper to produce, and more money added to their bottom line.
Just to put this into perspective, 40 million tons at 11% translates to 8.8 billion pounds of zinc. At current zinc prices, this values their resource at roughly $9 billion. Considering the company is going to be more than doubling their high-grade resource, the numbers are massive. For EACH PENNY that gets added to the zinc price, that will literally be hundreds of millions of dollars added to their bottom line!
As I pointed out earlier, RBC estimates zinc is off to $1.50 by 2019.
Oh, and by the way, Arizona's Taylor Deposit also contains 235 million ounces of silver resources at current estimates. It’s just icing on the cake that they ALSO have $4.7 billion worth of silver, at $20 per ounce.
Just to give you an idea of what sort of monster-sized deposit this is, BHP’s largest zinc property is Broken Hill. It’s the number-one lead-zinc deposit in Australia, and they are sitting at 200 million tons.
Red Dog, a zinc project which was one of the bases of success for Teck Resources, is sitting on 150 million tons.
In less than 1 year, Arizona Mining is looking to more than double their 40 million tons to 80 to 100 million tons, and could very well own a deposit that goes on to be in the top 5 in all of mining history!
Getting in early and allowing these successes to play out is exactly how to fully participate in the growth of this incredible story!
Having the right people, solid projects, and great underlying company fundamentals are crucial when being a disciplined stock picker. After following the work of Richard Warke and Jim Gowans for years now, it could not excite me more to have the opportunity to own a stake in this massive undertaking.
***With this management team, a world-class deposit, and favorable supply/demand fundamentals, owning shares of AZ is hardly speculating. If a sure thing existed,
this would be the closest thing to it.***
I can tell you that seeing what is going on with this trend is nothing short of jaw-dropping upside. Arizona Mining is in the right spot, brings to table a terrific management team, has a world-class project, and is on their way to being a go-to name people turn towards in the zinc space.
In a period where supply shortages are expected to climax, opportune investing could not be any greater than what we have here with Arizona Mining. Strategic timing and partnering with guys like Jim Gowans and Richard Warke could play out big for early investors, and it won't be my readers that miss out on this enormous trend.
- AZ is the only junior of its kind with a project of this magnitude. Projects of this size are typically in the hands of majors.
- Former President of the largest gold producer in the world, Barrick Gold, just signed on as President and CEO in January 2016.
- Zinc supply is at its lowest levels since 2009.
- Company carries ZERO debt.
- Management has a winning track record and has sold two companies in the last 5 years, with a combined valuation of $2.2 billion.
- With zinc currently at $1 per pound, RBC has given a price target of $1.50 per pound. Keep in mind that with each penny the zinc price goes up, that is tens, and potentially hundreds of millions, of dollars added to AZ's bottom line, especially after they more than double their resource.
- Company has a sizeable silver resource of 235 million ounces.
- Great jurisdiction. Arizona is one of the most mining-friendly states in the U.S.
Chief Editor, CrushTheStreet.com
Crushthestreet.com is owned by Future Money Trends, LLC. The website, its owners, their affiliates, directors, officers, employees and agents are hereafter collectively referred to as “we”, “our” or “us”.
We are publishers of publicly disseminated information on behalf of our clients, most of whom are issuers or non-affiliate third party shareholders of various issuers. We receive either monetary or securities compensation for our services and are required under Section 17(b) of the Securities Act of 1933, as amended (“Securities Act”), to specifically disclose our compensation. Section 17(b) provides that:
“It shall be unlawful for any person, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication, which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof.”
We endeavor to strictly comply by the disclosure requirements of Securities Act Section 17(b), the disclosure of which appears herein. We most often receive monetary consideration; however, we may on occasion receive securities compensation or buy and sell securities of the same security we are disseminating information for. Whether we receive cash or securities compensation, we fully disclose the receipt or anticipated receipt of such compensation.
We do not act in the capacity of any of the following and you should not construe our activities as involving any of the following:
- Providing investment advice;
- Acting in the capacity of an investment adviser or engaging in activities that would be deemed to be providing investment advice that requires registration either at the federal or state level;
- Broker-dealer activities;
- Stock picker;
- Securities trading expert;
- Securities analyst;
- Financial planner or financial planning;
- Providing stock recommendations;
- Providing advice about buy and sell or hold recommendations as to specific securities; or
- Offer or sale of securities or solicitation to purchase securities;
You should not interpret any of our publications as investment advice. If you are seeking investment advice you should consult with an registered investment adviser, registered stockbroker, or other financial professional of your choosing.
Our activities involve actual conflicts of interest, since we receive monetary or securities compensation in the very securities we are promoting and shortly after we receive the monetary compensation we promote the securities or after we receive the securities, we sell the securities during our promotional activities or thereafter. The non-affiliate third party shareholder from which we receive compensation also has an actual conflict of interest since he or she is paying us securities compensation for promotion services and such non-affiliate third party shareholder may sell other shares he or she holds while we are promoting the issuer that issues the stock that the third party shareholder holds.
Many of the securities we profile are considered penny stocks. Penny stocks inherently involve high risk and price volatility. You may lose your entire investment in any penny stock that you invest in. You should be acutely aware of the following information and risks inherent in any penny stock investment that you may make, including any issuer profiled on our websites or otherwise:
- Future Money Trends LLC has been compensated one hundred and fifty thousand dollars by Arizona Mining for a 30 day digital marketing campaign.
- We receive monetary or securities compensation from persons that claim they are a non-affiliate shareholder (“NAS”) or an issuer; however, we conduct no due diligence whatsoever to determine whether in fact they are a non-affiliate;
- We may receive free trading shares from the non-affiliates, which we may sell at anytime, including as soon as we deposit such shares in our securities accounts, during our promotion of the issuer’s stock (that the NAS owns), after our promotion, or at anytime;
- There is an inherent conflict of interest between our information dissemination services involving various issuers and our receipt of compensation from those same issuers;
- We may buy and sell securities in the securities that we provide information dissemination services, which may cause: a) significant volatility in the issuer’s stock; (b) price declines from our selling activities; (c) permit us to make substantial profits while we are disseminating profiles or information about the issuer, yet may result in a diminished value to the stock for investors;
- We conduct little or no due diligence on the profiles we receive from the non-affiliate shareholders nor do we conduct due diligence on any other information we disseminate to the public;
- We conduct no diligence on the press releases we receive from a non-affiliate shareholder, an issuer, or from a publicly available source;
- Penny stocks are subject to the SEC’s penny stock rules and subject broker-dealers to customer suitability rules and other requirements, which may lead to low volume in the securities and/or difficulties in selling the shares;
- Many penny stocks are thinly traded or have low trading volume, which may lead to difficulties in selling your securities and extreme price volatility;
- Many of the penny stocks we profile or provide information about are subject to intense competition, extreme regulatory oversight and inadequate financing to pursue their operational plan;
- The issuer profiles and information we provide represent only a small or even infinitesimal amount of information regarding the issuer and is insufficient to formulate an investment decision; as such, that information should only be a starting point from which you conduct an in-depth investigation of the issuer from available public sources, such as www.sec.gov, www otcmarkets.com, www.sec.gov, yahoofinance.com, www.google.com and other available public sources as well as consulting with your financial professional, investment adviser, registered representative with a registered securities broker-dealer;
- We urge you to conduct an in-depth investigation of the issuer from the above or other available sources, especially because we only present positive information, which is an insufficient basis to invest in any stock, yet alone a penny stock; accordingly, you should proceed with such investigation to determine, among other things, information pertaining to the issuer’s financial condition, operations, business model, and risks involved in the issuer’s business;
- The issuers we profile may have negative signs on the otcmarkets.com website (i.e. Stop Sign, No Information, Limited Information, Caveat Emptor), which you should determine from entering the symbol of the stock profiled into the otcmarkets.com website;
- You should determine whether the issuer we profile or provide information about is a development stage company, which is subject to the risks of a development stage company in a similar such business, including difficulties in obtaining financing for operations and future growth;
- You should conduct an investigation of the innumerable risks that are inherent or present in the business plan of almost any penny stock issuer; therefore, do not use our profiles or any information contained in our website or profiles as the sole determination of making an investment decision;
- We only present positive information regarding an issuer; therefore, you should conduct an in-depth investigation of any possible negative factors regarding such issuer;
- You should accept our information in an “as is” state; in other words, your use of the information is at your own risk and such information may change at anytime and it is not based upon any verification or due diligence of the statements made;
- We state that many of the stocks we profile are consistent with the future economic trends we discuss; however, future economic trends or analysis has its own limitations, including: (a) due to the complexity of economic analysis as well as the individual financial and operational characteristics of an individual issuer, such economic trends or predictions may amount to nothing more then speculation; (b) consumers, producers, investors, borrowers, lenders and government may react in unforeseen ways and be affected by behavioral biases; (c) human and social factors may outweigh future economic trends and predictions that we state may or will occur; (d) clear cut economic predictions have their limitations in that they do not account for the fundamental uncertainty in economic life, as well as ordinary life; (e) economic trends may be disrupted by sudden jumps, disruptions or other factors that are not accounted for in such economic trends analysis; in other words, past or present data predicting future economic trends may become irrelevant in light of fully new circumstances and situations in which uncertainty becomes reality rather then of predictive economic quality; or (f) if the trends involves a single result, it ignores all other scenarios that may be crucial to make a decision in the event of various contingencies;
- The information we disseminate about issuers contain forward looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, projections as indicated by such words as “expects”, “will”, “anticipates”, “estimates; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation into any such forward looking statements;
- Forward looking statements are limited to the time period in which they are made and we do not undertake to update forward looking statements that may change at anytime; and
- We make statements in our profiles that an issuer’s stock price has increased over a certain period of time since our publication of information about an issuer because such stock price reflects only an arbitrary period of time, it is of no predictive or analytical quality and you should not use any such information in your analysis of any such issuer;
Never base any decision off of our website or emails.
FMT has been compensated and its employees and affiliates may own stock that they have purchased in the open market either prior, during, or after the release of the companies profile which is an inherent conflict of interest in FMT statements and opinions and such statements and opinions cannot be considered independent. FMT and its management may benefit from any increase in the share price of the profiled companies and hold the right to sell the shares bought at any given time including shortly after the release of the companies profile. When it comes to buying or selling shares. Please assume we are buying and/or selling before, during and/or after publication of the discussed Company. FMT will not advise as to when it decides to buy or sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment of the market.