Zinc has been underappreciated despite being the best performing metal this year
SmallCapPower | October 18, 2016: Zinc may get overshadowed by gold’s glister, yet it has been the best performing base metal, gaining 46% year to date (YTD), compared to copper (~6%), nickel (~23%), tin (~40%). Gold, meanwhile, has appreciated ~17% YTD. One of the major causes of this price increase for zinc is the deficit that is expected to produce a record shortage, as Chinese smelters may have to cut production for the first time in years. With demand for zinc only set to increase as it is used for rust-proofing steel in building and automobiles, this shortage will persist and should push the price higher. The silver juniors on our list today have diversified portfolios in terms of minerals in their projects, and zinc is one of them. With strong cash positions compared to accounts payable and each junior currently producing or set to start production by 2018, these names should be in good shape to continue to benefit from zinc’s run.
Impact Silver Corp. (CVE:IPT) – $0.70
Diversified Mining
Impact Silver Corp is a Canada-based silver producer engaged in silver mining and related activities, including exploration, development and mineral processing in Mexico. The Company’s segments include Mexico, including the Company’s mining operations and exploration properties; Canada, including head office and group services, and Caribbean, including exploration properties held in the Dominican Republic. The Company operates a series of mines near Zacualpan in the State of Mexico and in Guerrero State, and produces silver, lead, zinc and gold sold in the form of lead and zinc concentrates. It controls over two mineral districts in central Mexico totaling approximately 300 square kilometers, including the Royal Mines of Zacualpan Silver District and the Capire-Mamatla Mineral District.
- Market Cap: $ 61.37 (mm)
- YTD Price PCT Change: 500.0%
- Cash (LTM, CAD, Millions): $7.7
- Accounts Payable (LTM, CAD, Millions): $1.94
First Majestic Silver Corp. (TSE:FR) – $10.33
Non-Gold Precious Metals & Minerals
First Majestic Silver Corp. (First Majestic) is a mining company engaged in the business of silver production, development, exploration, and acquisition of mineral properties with a focus on silver production in Mexico. The Company operates through eight segments: six segments located in Mexico, one retail market segment in Canada and one metal trading segment in Europe. Its segments in Mexico are Santa Elena, La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra. Its segment in Canada is Coins and Bullion Sales, and Europe is Silver Sales. The Company owns and operates approximately six producing silver mines.
- Market Cap: $ 1,616.76 (mm)
- YTD Price PCT Change: 129.0%
- Cash (LTM, CAD, Millions): $108.2
- Accounts Payable (LTM, CAD, Millions): $27.26
MAG Silver Corp. (TSE:MAG) – $17.51
Diversified Mining
MAG Silver Corp. is a mineral exploration and development company focused on the acquisition, exploration and development of projects located within the Mexican silver belt. The Company operates through the exploration of mineral properties in Mexico segment. The Company’s projects include Juanicipio Property, Cinco De Mayo Property and Guigui Property.
- Market Cap: $1,397.24 (mm)
- YTD Price PCT Change: 79.2%
- Cash (LTM, CAD, Millions): $30.86
- Accounts Payable (LTM, CAD, Millions): $0.339
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