Is a commodity super cycle on the way?
Experts discuss. What a super cycle absolutely needs are strong demand drivers. This existed at the beginning of the century in the form of industrialization. This development was undone by the financial crisis in 2008, then by the European debt crisis. This was followed by the trade disputes between the USA and China. When it comes to the question of whether we are facing a new commodity super cycle, the energy transition comes into play.
Triggered by the Corona pandemic, governments have been loosening their purse strings. There are infrastructure plans in China and the USA. And an important issue in many countries is the promotion of electromobility. Metals such as nickel, silver, platinum and zinc will therefore be in greater demand.
Zinc, for example, is mainly used to protect other metals from corrosion. Zinc is therefore often needed in the construction, automotive and infrastructure industries. Zinc mines can be found almost everywhere on earth.
The largest zinc producer in China is Griffin Mining - https://www.youtube.com/watch?v=hhJhEXrVYrg -. The company's Caijianying mine produces zinc, gold, silver and lead. The first quarter of 2021 saw a welcome increase in production (compared to 2019, as 2020 would not be as meaningful due to pandemics).
Osisko Metals - https://www.youtube.com/watch?v=AaOfkA_AA2s - also has high-grade zinc projects in New Brunswick and the Northern Territories. Significant there is control of the Pine Point zinc mining camp.
Current corporate information and press releases from Griffin Mining ( https://www.resource-capital.ch/en/companies/griffin-mining-ltd/) and Osisko Metals ( https://www.resource-capital.ch/en/companies/osisko-metals-inc/).
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