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

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To: marcos who wrote (42231)	6/11/2007 11:12:41 AM
From: Mr. Aloha	Read Replies (1) of 78424

CIBC, RBC Rank Zinc #1 -- In a report on base metals dated today, CIBC said "The extended cycle, the sustained high earnings and cash flow levels and the scarcity of investment options should lead to higher valuation multiples for the sector." Here are some highlights: "We believe the longerterm outlook for the base metals bull run is as strong as ever and that any pullback should create opportunities." "Our more positive outlook is based on continued strong global demand combined with a dearth of new supply additions over the past 12 months. This circumstance should keep the markets tighter for longer than previously envisaged, maintaining high prices." "We are raising our commodity price forecasts for the period 2007 to 2010. The extended cycle, the sustained high earnings and cash flow levels and the scarcity of investment options should lead to higher valuation multiples for the sector." "Based on our forecasts, we continue to view the zinc market as having the strongest fundamentals on a go-forward basis to support higher prices year over year." CIBC emphasized, "We continue to view zinc as the best-positioned commodity." In a report dated Friday, RBC also showed their strong preference for the zinc supply/demand fundamentals, forecasting that demand will be constrained by supply in coming years. The only metal they forecast a higher than current price for in 2011 is zinc ($1.90 vs. $1.68 today, whereas they forecast nickel to drop to $6 in 2011 from over $20 now). It's significant that the analysts who look at each of the metals markets in detail independently come to the conclusion that zinc has the best supply/demand fundamentals for coming years.

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