Why Zinc?

“We anticipate zinc resources will be a scarce commodity in the short and medium term. Zincore’s strategy is to be well positioned to maximize shareholder value from this opportunity.”

– Jorge D. Benavides, President and CEO

Value

• The zinc market has rebounded during 2009 with prices opening in 2009 at about U.S.$0.55/lb  to the current US $0.95/lb level.
• Estimates indicate that only 50% of the worldwide government stimulus programs have been implemented with the remaining 50% mostly scheduled for 2010.
• Zinc is used in galvanizing steel and the price should benefit from the huge construction and infrastructure programs that are going to be implemented in the next year or so.
• China, a long term world zinc supplier is now a net importer.
• Rapidly growing BRIC economies will further increase the demand in the years to come.
• Best estimates suggest that a significant portion of mine capacity will be closing or decreasing over the next few years.
• Toward the end of 2010 there is a risk of the tightening of the zinc concentrate market.
• Few new mines are currently being developed and therefore it is predicted that few will be entering production in the foreseeable future.

Uses

• Its most important application is in the protection of steel against corrosion.
• Steel is one of the most widely used materials in the world and zinc allows its durability to be prolonged. It extends the life and reduces the maintenance costs of many steel goods such as homes, cars, bridges, and port facilities.
• Zinc fuel cells are used to power electric vehicles, generators, computers, cell phones, and hearing aids.
• Is a natural component of the earth’s crust. It is also present in air, water, plants, animals and humans.
• Is an essential element for human health.  Adequate daily intake is important for the proper function of immune system, digestion, and reproduction.
• Is a natural element that plays a critical role in the biological processes of all living organisms. Therefore it is critical to the environment rather than harmful.
• It is used in food, animal feed, and fertilizers, as well as pharmaceuticals and cosmetics.
• Is fully recyclable.