Massive production cuts are currently driving the zinc price. The multi-year high is also good for the shares of zinc companies.

Zinc tablets are even on the shelves of discount stores. But few customers know why they need the metal. Because zinc is not only an industrial metal, but also needed in organisms. Humans need the metal, for example, to show better wound healing and to have good cell growth. Important especially in times of cold is also the support of the immune system and the improvement of metabolic processes. Zinc acts as part of some proteins and enzymes that are responsible for this. These properties are also used in agriculture.

Nevertheless, zinc is not always sought after. There have been price collapses time and again. But since the last price slide in zinc in the spring of 2021 to a good US$ 1,900 per ton, a lot has happened, especially now zinc is hot again. The reason for this is probably the statement by a leading zinc processor to reduce production in the European smelters by up to half. Because the high energy costs and the costs, which result from the emission of CO2, would make this necessary. Three smelters are involved here, which produce a total of around 700,000 tonnes of zinc per year. So, if this announced sharp reduction in production were to happen, it would have a major impact on the zinc market, and prices for processed zinc would continue to rise.

Zinc demand (refined zinc) is expected to increase by 2.3 percent globally to 10.41 million tonnes in 2022. Global zinc mine production is expected to increase 4.2 percent next year to around 14 million tonnes. Due to the expected refinery capacity, perhaps not all of it will be taken immediately and a renewed decline in mine production prices would be possible. But that would probably in turn create favorable investment opportunities in the mining sector.

If you want to bet on the high-performance material zinc, which is environmentally compliant and recyclable, you should take a look at Griffin Mining or Osisko Metals.

In China, the largest zinc producing country, Griffin Mininghttps://www.youtube.com/watch?v=AXodgyUEKMc – produces zinc, gold, silver and lead at its Cijiaying mine.

Osisko Metalshttps://www.youtube.com/watch?v=1abKFXCdN04 – also focuses on zinc and owns one of the most important zinc properties in Canada, the Pine Point project.

Current corporate information and press releases from Griffin Mining (- https://www.resource-capital.ch/en/companies/griffin-mining-ltd/ -) and Osisko Metals (- https://www.resource-capital.ch/en/companies/osisko-metals-inc/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 – 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/

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