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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: marcos who wrote (18682)	8/19/2006 11:44:17 AM
From: Mr. Aloha	Read Replies (1) of 78411

Look at the chart of zinc production by continent next to the 5-year LME zinc inventories and the zinc supply gap chart: From the ILZSG link, you can see that Asian zinc consumption has contined to grow strongly the first half of 2006 despite the near tripling in the price of zinc. While a global recession, if one comes, may slow Asian growth temporarily, the supply/demand imbalance has enough cushion that the price of zinc should remain strong. With many zinc mines scheduled to cease production in coming years, zinc miners with multi-billion dollar deposits in safe areas of the world coming into production during that time should do extremely well. This big picture of zinc, combined with their extreme undervaluation (fully-diluted market cap well under 2% of measured zinc resource) for what could be the second largest new zinc mine in the world in coming years (maybe the largest if war/politics in Iran prevents Mehdiabad from going to production), along with their huge silver potential, are some of the reasons why I'm very happy holding MMGG as my biggest position by far and plan to hold on for many years.

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