Bunker Hill Mine Could Create Huge Returns In Tight Zinc Market

Photo: Bunker Hill Mine Could Create Huge Returns In Tight Zinc Market

Zinc and Lead are extremely useful metals. The world may be learning just how dear they are today, as zinc prices push though highs seen more than a decade ago. A recent move by commodities powerhouse Glencore to curb zinc production is partly responsible for zinc's big run, but a non stop need for more galvanized parts is also helping the price for zinc to go higher.

One of the most productive mines in the lead/zinc/silver group was the Bunker Hill Mine in Idaho, and today Bunker Hill Mines is in the midst of bringing it back into production. While they are still working on a 43-101 for the market, their CEO, Bruce Reid, says that Bunker Hill is the largest mine of its kind in the Americas.

While this is no small claim, The Bunker Hill Mine has a hundred year history of metal production to back up Mr. Reid's words. The Bunker Hill Mine was shuttered in the early 1980's due to EPA regulations that penalized its smelting operations, but today, it is ready to be up and running once again. Bruce Reid has a history of bringing mines into production, and with Bunker Hill, he is living his dream.

Solid Fundamentals

Both the lead and zinc markets appear to be on very firm ground, and the silver portion of what Bunker Hill produces would likely be profitable going forward as well. Eurasian demand for quality steel making ingredients is rising, and with the Belt and Road Initiative (BRI) coming into reality, there really is no telling how the economy between Europe and Asia may develop.

Galvanized steel is a key part of most major infrastructure, and for any exposed surfaces, galvanization is one of the lowest priced options out there to make sure the steel lasts. When we consider that the BRI will span the largest land mass on earth, as well as a number of ports across Eurasia, it is easy to understand why zinc looks like a good bet going forward.

There is also a reluctance from major producers, like Glencore, to pump out their reserves at low prices. The resource sector has just been through a very rough patch, so now that money is being spent on vital materials again, there really isn't any reason for them to run to the market with loads of cheap metal. There has also been a huge lack of development over the last decade, and they may come to haunt industrial concerns as time goes on.

Little Known Hero

The value of the Bunker Hill Mine isn't widely known for the moment, but this may be an advantage for investors that dig deeper into what may become one of the most successful new mining companies in a long time. Unlike developing a new project from scratch, the Bunker Hill Project is almost ready to go. Mr. Reid thinks that it will be back up and running within a year or two, and if so, its value will probably skyrocket.

Of course with any business there are risks, and investing always carries with it some doubt. But given the market for zinc/lead/silver, Bunker Hill Mining looks like a company that is worth watching. If you are interested in learning more about the market for metals, the upcoming Silver and Gold Summit is a great place to be. Bruce Reid will be presenting useful information about his company, and a number of other investors will be sharing their ideas on the global economy, and precious metals market.

The Summit will be happening on November 20th and 21st, and there is sure to be something of interest for any investor who wants to learn more about the market for precious metals, energy or base metals. There is still time to register, and we hope to see you there!