My Image

Mark M.
- Sent in by Email

My Image

"The most profitable picks site I've found online... You guys have become my goto for small caps." 

My Image

Get Our Picks First!

PLUS:  Free Silver Report

"12 Reasons Silver Will SkyRocket in 2020 & Beyond"

My Image
My Image
My Image

Related Articles

Screenshot from Jeff Clark's Silver Presentation

by Daniel Reid

Vendetta Mining Corp:   Current Chart on OTCMKTS: VDTAF​​​​​​​.   On Canadian Exchange VTT.V

How To Ride The Coming Silver Stock Mania...The Smart Way

All That Glitters Is Not Gold. 

With all the craziness going on in the world, Gold and Silver stocks often steal the spotlight. Yet a lot of investors are going full-force into the so-called ‘lesser metals’.  


Why? Because there is huge profit potential.  AND it’s so easy to pick up some great discount stocks in some of these ‘less talked about’ bull markets.  


Zinc is one such bull market right now that’s been moving up since March.  


But if you think you’ve already missed the boat… Fret not.


You can still profit from zinc’s bull run, especially with a lot of the smaller cap stocks that should have some considerable upside left in them.


Vancouver, Canada-based mining junior Vendetta Mining Corp. fits the bill.


The company’s lead-zinc mine in probably the world’s most prolific lead-zinc production region is on deck to start production, and this note discusses the company’s advanced exploration plans.


First, a primer on zinc and the zinc market.


ZINC’s ZING


Zinc is so versatile that it is, according to the U.S. Geological Survey, the fourth most widely consumed metal in the world after, iron, aluminum, and copper. 


Although primarily used to galvanize steel against rust and corrosion, refined zinc is also used in a wide variety of products, such as coins (nickels and pennies), automobiles, electrical equipment, batteries, paints, cosmetics, and pharmaceuticals.


Furthermore, in recent years, market watchers have noted zinc’s increasing use in agriculture as fertilizers, and researchers have touted its potential uses in rechargeable batteries/energy storage and solar panels. 


These emerging uses could become key drivers of zinc demand in the near future.


THE ZINC MARKET


The January 2020 U.S. Geological Survey, Mineral Commodity Summaries report assessed zinc resources of the world at about 1.9 billion tonnes.


Furthermore, the report stated that in 2109 the top five producers of mined zinc in the world were China (4.3 million tonnes), Peru (1.4 million), Australia (1.3 million), India (0.8 million), and USA (0.78 million).


According to the International Lead and Zinc Study Group (ILZSG), global refined zinc production in 2019 was about 13.5 million tonnes and global consumption was about 13.7 million tonnes. 


China makes up about half of all global refined zinc production.


ZINC’S BULL RUN


Zinc’s current bull run started in January 2016.


From then to June 2020 the zinc price (London Metal Exchange cash buyer) rose a cumulative 42%.


Global mined supply shortages, spurred by mine closures, were the primary driver of this price run-up.


However, year-to-date (January-June 2020), zinc is down 12%, impacted mostly by COVID-19 containment measures that have hit global demand for most industrial metals.


Despite this big price drop and forecasts of imminent increases in global mined supply, a confluence of factors could still sustain the bullish price trend over the next few years. These factors are:


* Global easing of lockdowns

* Latin American woes, and

* Smelters capacity uncertainty/inventories depletion


Take a look at Vendetta Mining Corp's Chart below, and what looks like a fantastic Breakout on Big Volume.   


My Image

LOCKDOWN EASINGS


As countries around the world continue to cautiously ease lockdowns, zinc demand should gradually pick up on the back of global economic recovery.


Biggest refined zinc consumer China started to ease way back in march, and construction spending there is already on the uptick. 


LATIN AMERICA SUPPLY WOES


On the supply side, Latin America is one part of the world that is yet to get a grip on the COVID-19 pandemic.


Peru and Mexico, which are top ten world producers of mined zinc, have been particularly hit hard.


So, shuttered supply from mine closures in Latin America may take longer than expected to return to the market.


That said, many market watchers still expect the zinc market to be oversupplied this year. 


Therefore, all told, mined supply-side shortages may not prove to be a strong tailwind for the zinc bull run going forward.


SMELTER (REFINER) CAPACITY UNCERTAINTY


Zinc mines do not produce refined zinc (zinc metal).


Instead, they produce zinc concentrates and pay smelters treatment charges to turn the concentrates into zinc metal.


This makes smelters the potential bottlenecks in the zinc supply chain and makes smelter capacity utilization a key determinant of the zinc price.


Now, although more mined zinc is slated to come to market in the next few years, smelter capacity utilization rates are forecast to run at or near full capacity in the medium term.


These high utilizations will likely give foundational support to the zinc bull run until key Asian smelters invest in more smelter capacity.


So, what makes Vendetta Mining an ideal stock to ride this zinc bull run?


VENDETTA MINING: SMALL FISH IN A RICH POND


As of 2019, Australia reportedly has the largest lead and zinc reserves in the world. Little wonder the country is one of the most friendly mining jurisdictions in the world. 


Founded in 2009, Vendetta fully owns the Pegmont Lead-Zinc project, a mine located in Queensland, Australia’s Mount Isa-McArthur province.


This province reportedly holds the world’s richest endowments of Lead-Zinc-Silver mineralization. 


Therefore, Vendetta’s property is in a prime location with potentially high-grade mineral deposits. 


MINERAL RESOURCE POTENTIAL


In January 2019 Vendetta completed a Preliminary Economic Assessment (PEA), which is a feasibility study to determine the resource potential and economic viability of the Pegmont project. 


According to Vendetta Mining, the PEA indicated 5.8 million tonnes of mineral resources and inferred an additional 8.3 million tonnes.


An updated resource estimation revealed the feasibility of 8.9 million tonnes of resources extractable though open pit mining and 1.7 million tonnes through underground mining.


Generally, mining costs are lower for open pit mines than for underground mines, so the fact that Vendetta’s operation will be primarily open pit should benefit their bottom line.

https://tinyurl.com/ydyu5q6f

Want to Share This Article

With Friends?

My Image

Copy and paste the share link below:  

Aftemath on American OTC:  FLMZF,  Canadian TSX trades under AAG
My Image

Mark M.
- Sent in by Email

My Image

"The most profitable picks site I've found online... You guys have become my goto for small caps.  

GROWTH PROSPECTS


Opportunities exist for the company to expand its resource potential base because the PEA does not include all areas of its property currently prospected.


Furthermore, because the company is based in a major mining center with numerous big and small cap players, it has ample M&A opportunities for strategic growth.


PRODUCTION PLAN


Currently, Vendetta does not produce anything.


The Preliminary Economic Assessment (PEA) projects production to start in 2021 with an initial mine life of 10 years.


It projects an average annual zinc metal production of 50 million pounds, annual lead metal production of 124 million pounds, and annual silver metal production of 298,000 ounces.


Based on this production profile, Vendetta is not a pure play on zinc.


INVESTMENT RETURN


The PEA projects a “base case” after-tax return of 24% based on metal prices of Lead US$0.94 per pound, Zinc US$1.09 per pound, and Silver US$16.5 per ounce. 


CONCLUSION


The current zinc price bull run that started in 2016 still has a few more years to run.


Vendetta Mining (OTCMKTS: VDTAF) is a small cap stock with prime Lead-Zinc assets in Australia's Mount Isa province, which is reputed to be the richest Lead-Zinc-Silver belt in the world.


The company has completed the feasibility of its high-grade Pegmont Lead-Zinc project and production is slated to begin in 2021.


Therefore, if you’re an investor looking to profit from this zinc bull run with a small cap stock poised to make a move, then consider Vendetta. 



Disclaimer:

Please read our full disclaimer by clicking here​​​​​​​.  Statements regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices; (ii) a change in market conditions; and (iii) the fact that future operational results may not be accurately predicted based on this limited information to date. Except as required by law, the Company does not intend to update any changes to such statements. Caddy Stocks believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. This article shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.