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To: Mr. Aloha who wrote (423)	1/29/2007 11:38:11 AM
From: AurumRabosa	Read Replies (1) \| Respond to of 5637

"All these firms may be wrong, but anyone who does a detailed analysis of the zinc market like they've done has come to a conclusion that zinc demand will exceed available supply in coming years without big price increases." So you do not expect big increases in the Zn price but demand will exceed supply for years to come making the value of the MMG deposit a near certainty? When I raise some cash MMG is on my very short list.

To: Mr. Aloha who wrote (423)	10/30/2007 12:53:54 PM
From: Mr. Aloha	Respond to of 5637

Here's the zinc portion of this week's China Commodities Weekly, reporting the September numbers. Again, China is an enormous importer of zinc concentrate, and despite those imports, China is now also a net importer of refined zinc. Their having to import refined zinc in September despite the 178% YOY increase in zinc concentrate imports so far this year shows that "China has been sucking up the world’s growing supply of zinc mine output, turning it to refined metals, and then using it for domestic consumption." Although shorter term, zinc prices will fluctuate based on such factors as market expectations of new supply, fears of a global recession, bearish articles, and the shorting of zinc futures by hedge funds, longer term the prices will be driven by supply and demand. I'm confident that growing demand for zinc combined with a dearth of new supply beyond the short term will lead to strong zinc prices for many years. Zinc – A Net Importer in September • China was a net importer of zinc in September for the first time since May. In September, China’s exports of refined zinc fell to 12,325 tonnes, down 44% MOM and 18.5% YOY. Imports more than doubled compared with August, to 13,029 tonnes. Domestic refined metal production remained modest. In September, China produced 324,800 tonnes of zinc, up 13.9% YOY. • On the input side, China imported 294,408 tonnes of zinc concentrate in the month, up 280.6% YOY, a record high. Domestic mine production only grew 13.1% YOY to 222,600 tonnes in September. • We view the September zinc data as very positive. In the first nine months, China grew its concentrate imports by 178% YOY to 1.557 million tonnes. With this, China is only a very small net exporter of the refined metal (143,504 tonnes) and a small net exporter of galvanized steel (195,718 tonnes). This shows that on a net basis, China has been sucking up the world’s growing supply of zinc mine output, turning it to refined metals, and then using it for domestic consumption. In the first nine months, China’s galvanized steel output grew 51.9% to 15.08 million tonnes.