Canada Zinc Metals has a strong balance sheet with ~$10 million in working capital. This summer’s work program is expected to total $2 million which will leave CZX with $8 million in the bank. In an extremely weak financing environment for junior mining companies, this is a tremendous advantage.
Canada Zinc Metals is trading at 23 cents, close to a 5-year low. The share price was 55 cents back in September and has been more than cut in half with no fundamental reason for the sell off.
Investors should watch zinc inventory levels as they will drive the zinc price, but as mentioned earlier, the commodity looks set to see a major increase in price. With the space looking like it’s going to heat up, Canada Zinc Metals (CZX:TSXV) should definitely be on a zinc bull’s watchlist.
Symbol: CZX:TSXV
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