Canadian Zinc Stocks
Mining stocks are companies that produce high-quality gold, and zinc, silver, and copper are hot commodities at the moment. Silver and gold are important drivers of their share value, but zinc prices and production help to keep stocks from falling too low to make it worthwhile. Trading in zinc is also a way to bet on a weak US dollar and high inflation.
Zinc prices have shown strength recently, but at least one analyst is skeptical about the sustainability of high prices. Growing global demand for galvanized steel, zinc alloys, die casting, and other zinc products have driven up prices. New destruction of supply and demand by zinc substitution will eventually rebalance the market, but this could take months, if not years.
In a study of the zinc industry, the Ural Mining and Metallurgical Company, a leading zinc producer based in Russia, predicts that zinc extraction from existing mines is likely to peak in 2024, with a post-peak production deficit depressing the price of zinc concentrate in the second half of the decade. However, the company claims that demand for the metal is likely to outstrip output growth and reduce the surplus in 2021.
Compared to indexed base metals, the price of zinc has soared since the beginning of 2016 with expansion in the mining, smelting and production facilities in China, Ireland and Peru. As a result, base metals were among the best-performing commodities in 2020, and Zinc price will continue to rise in the first half of 2021. After half a century of depleted reserves at the Lisheen Mine, Glencore suspended zinc production of 500 kt as the market recovered.
Zinc is an important growth driver as the Hudbay Minerals Zinc production rose by 35% in 2014, partly due to higher grades at their two primary zinc mines, the Lalor zinc and gold mine and the 777 copper-zinc mine in Manitoba. The company is more known for its silver production, but it is still the largest silver producer in the US and says that it is also the biggest zinc producer in Canada, thanks to production from its Green Creek and Lucky Friday mines. Zinc stocks made it to the top of the list of zinc stocks because Teck Resources is the second-largest zinc producer globally, with a metal supply of 31% of gross profit in 2015.
Zinc is found in our everyday products, but throughout history, zinc mining stocks have been volatile. Along with aluminum, copper and iron, zinc is the only other base metal used. In addition, about a third of the zinc produced is used to galvanize other metals such as steel or iron.
When searching for stocks to diversify your portfolio, the current market situation can be a good indicator that the time is right to invest in zinc mining stocks. Look at this list of three zinc companies that have seen share prices rise this year. As well, the Investing News Network has compiled a list of the top three zinc stocks on the TSX for 2021 with a view to positive moves in the zinc market and the best zinc mining stocks.
With this in mind, here is our list of the 10 best zinc shares to buy right now. If you want to skip our in-depth analysis of each of these stocks, go to the 5 best zinc shares you can buy now.
With all the interest in gold, silver and other precious metals, zinc seems to have slipped under the radar of investors. Yet, amazingly, zinc is extracted in six states, and five companies operate 15% of the total mines.
Its diversified resource companies are organized around the extraction and mineral exploitation of zinc and copper for steel production, coal and other forms of energy production. Zinc and copper production and concentrate of base metals are their specialties, but they also work on discovering and marketing a wide range of metals and ores. HudBay is a company focused on extracting zinc, copper and concentrates, including silver and gold.
Zinc is the fourth most widely used metal in the world, after iron, aluminum and copper. Therefore, as demand for zinc technology grows, it is a safer investment than other companies with higher share prices.
Company Junior International (USGDF) is engaged in mineral exploration in Nevada, USA. One of the most interesting aspects of the company is that the company has signed a joint venture agreement with Rio Tinto (Rio). This agreement is binding and allows the USGDF to develop an important asset that it has developed with adequate resources after securing $30 million in Rio funding over the next 11 years.
The problem with the limited number of zinc companies is that most leading producers trade in foreign exchange. At the same time, other top miners manufacture it as a by-product of mined other metals. Thus, pure zinc play is an option for mining and production companies to spread their risk across a range of ores.
One way to get involved is to own a metal mining company active in exploring, extracting, and selling metals and other minerals. Companies are engaged in acquiring, exploring, and developing mineral properties and are interested in metals such as gold, silver, lead, zinc, copper, and others. Although listed companies are the most leveraged way of exposing themselves to the price of zinc, many of them are as exposed to zinc prices as other metals and commodity prices.
The company has access to the Bathurst Mining Camp (BMC) at 40,000 hectares in New Brunswick, a zinc, lead and silver production area. In Quebec, the company’s Genex project covers more than 42,000 hectares with 12 zinc plots.