Trevali Mining Corp (TV.TO)

A pure play in zinc. He likes what they did on the acquisition of the Glencore assets, with respect to the share issues they made. Zinc is very, very tight. Supply has been very tight, and he thinks zinc is going to have to get to $1.50-$1.60 soon. Too small for his holdings.

A very unique way to play a fantastic zinc market. Zinc has gone from about $.80 in the last year to almost $1.40. It has been the premier performer in the base metals bulk materials space over the last 1.5 years. The largest pure zinc producer globally. Just did a big deal with Glencore, basically more than doubling its production, adding some West African assets. The cost structure is probably around $.85-$.90 a pound, versus price which is at almost $1.40. The balance sheet is in great shape. The only concern he would have is, are they spread too much?

It will take 2 or 3 years for new mines to come into production so the higher price should continue. They forecast a 31% increase in earnings next year. These guys are free cash flow positive.

Zinc is at a 10 year high and they just bought two mines. There is very good leverage. It will be the 8^th largest zinc producer in the world. (Analysts’ target: $1.90).

It has been a Canadian producer of Zinc until now. There aren’t that many zinc plays. He owns a bigger one. TV-T is a relatively low cost producer and 100% zinc. They have already done well.

Typically, Aug-Sept are not the times to be into metals and mining companies, particularly in September. There are a lot of shutdowns in factories and demand tends to dry up. The chart on this shows it has not done well at all. We are at the same level we were at in 2015. He would not be stepping in at this time. Usually the best time to get into metals and mining stocks is November.

Both Stops he uses were hit today, so something is going on. All indicators are starting to roll over. There is susceptibility to $1.06. The chart is showing sort of a Bull flag. He prefers buying a basket of the junior resource companies for a very small portion of his portfolio. It looks like it wants to find support at $1. He wouldn’t stand in the way of this right now.

She likes the fundamentals of the zinc market, and this is a good play on that. Not crazy about the acquisitions they made as the 2 mines are not the same quality that they had. If you need a zinc play, this is a good one.

The whole sector has been pretty beaten up. This has actually done pretty good on a percentage basis. The chart is forming a possible cup and handle. The first place he sees for support is around $1, 27% below the current position.

Did an acquisition of a couple of zinc mines, and have become the best pure play zinc on the TSX. Zinc is going to bounce up and down, but the underlying supply fundamentals are looking pretty good. This is one to own. If you believe in global growth, this is a pretty good name to own for the zinc exposure.

One of the only pure play zinc producers. He doesn’t like some of the assets. Thinks they had some problems in this recent quarter. He does like the story, but would be looking for a lower entry point. Zinc can be very volatile and very niche. You have to have a long-term belief in the price of zinc. He would like it at around $1.05 or so.

Thinks the stock will go up, because the zinc story is gaining momentum. The epicenter of the global mining stocks is Canada, so is a Canadian play that will do well. Looking at the balance sheet and the income statement, he is less attracted to it.

This has been his favourite for years. He’s a fan of zinc and the commodity has performed very well. This is the purest play. Just completed a major transaction with Glencore (GLEN-LN) to buy some mines in West Africa. That basically vaults them into the largest pure zinc producer globally. Thinks we are only touching the beginning of zinc, and can see it easily going to $1.50-$1.60 in the short term. Currently trading at around $1.25.

She owned them for a while. There is much more of a balanced market in Zinc than in Copper. She prefers mines in the Americas, rather than Africa, however. She wants to do some more work on it.

He has been surprised on the strength of zinc. They have become the largest pure play zinc company in North America. He likes what they are doing.