On November 28th, zinc prices hit a new 9-year high of $1.315 per lb up 98.6% from its low on January 12th of $0.66 per lb. Currently, zinc is trading for $1.28 per lb and has the best looking chart out of all base metals.
With only a few weeks remaining in 2016, all metals are up big year-to-date, but zinc is by far up the most with a gain of 79.59% vs. steel up 48.81%, tin up 43.87%, lead up 38.56%, palladium up 33.96%, nickel up 30.89%, cobalt up 26.82%, copper up 26.34%, silver up 20.05%, aluminum up 15.96%, gold up 9.08%, and platinum up 8.72%. That’s right, zinc is now up 8.77X more than gold in 2016!
NIA’s #1 way to capitalize on soaring zinc prices is with the stock Callinex Mines (CLLXF) currently trading for $0.44. Already, CLLXF is up 93.33% from when NIA first suggested it on April 24, 2015 and we believe it is getting ready to make a major breakout above its 52-week high reached in August of $0.54 per share.
With only 62.2 million shares outstanding, CLLXF has a market cap here at $0.44 per share of $27.37 million and is sitting on $3.69 million in cash with zero debt, for an enterprise value of only $23.68 million.
Take a look at the major zinc producer Hudbay Minerals (HBM). It just hit a new 52-week high of $7.35 and is up 83.8% since the end of October. HBM‘s flagship 777 Mine in the Flin Flon district of northern Manitoba, Canada is one of the largest producers of zinc in the entire world, but it has a limited mine life and is scheduled to run out of ore in 2020. CLLXF’s Flin Flon project is adjacent to HBM’s 777 Mine and is completely surrounded by HBM’s claims! HBM will soon need new ore for its Flin Flon processing facility and CLLXF is the largest holder of exploration claims in the area!
CLLXF also owns the 6,000 sq. hectare Pine Bay zinc project located just 16 km away from HBM‘s processing plant! CLLXF’s Pine Bay claims completely surround the claims owned by HBM!
After CLLXF announced on November 23rd that its current Pine Bay drilling campaign has discovered amazingly high zinc grades of 13.1% Zn Eq over 10.3m, there is now major speculation taking place in the local media that HBM is becoming very interested in CLLXF: http://www.thereminder.ca/news/local-news/hudbay-not-commenting-on-callinex-s-pine-bay-drill-results-1.3093884
Look for CLLXF to breakout past its 52-week high of $0.54 and explode towards $1 in the weeks ahead!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has been compensated by CNX a total of $50,000 cash for investor relations contract. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.