Canada Zinc Metals Inc. (CZX .V) is a junior mining company.
Zinc has many applications with the most common being it's usage to galvanize iron and steel to prevent it from rusting. As an essential base metal, it is subject to supply and demand. Over the past few years, the depleting supply has caused a rise in zinc prices.
In 2016, CZX's stock price doubled. The catalysts have been: 1) The rising price of zinc, 2) The investment of Tongling Nonferrous Metals Group Holdings Co. Ltd. (i.e. own 30% of CZX's shares) and 3) The involvement of two majors (Teck Resources and Korea Zinc Company). The company has an impressive number of properties but only one-third are active : Akie (Cardiac Creek), Cirque, and Pie. Akie and Cirque have involvement from Teck and Korea Mining. Pie, Cirque East and Yuen are available to be optioned to the same.
In a recent presentation in Switzerland, the CEO of the company mentioned that CZX has been in talks with other majors such as Lundin and Excelsior Mining for optioning other parts of the property (Mt. Alcock). This is interesting because up to now CZX has not spoken publicly about leveraging its other properties. Also noted by the CEO is the possibility to spin off another company to leverage the remaining existing claims with the potential of including "free" shares to current CZX's shareholders.
CZX is in the midst of preparing for a major drilling campaign anticipated in June 2017 (Akie Property). The company has hired Murphy Geological Services who are currently working on an analysis of the high-resolution satellite imagery for Akie, Yuen North and Mt. Alcock.
In the past two weeks, there has been a rise in the number insider purchases, including the company buying back more of its own stock. The recent pull back on CZX's stock price, in the past month, is interesting considering the number of catalyst present for the company.
While the company is planing to release a Preliminary Economic Assessment (PEA) by early 2018, it is believed to be currently under-valued based on their deposit estimate and the current price in relation to its' peers. Some estimated the fair value of CZX at around .60 cents,
If you're interested in a zinc option, this company should be on your radar.
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