One of Vancouver, Canada’s zinc mining companies, Trevali Mining Corp. (OTCMKTS:$TREVF), released a report on the 18th of May, 2017 which reported that shareholders had agreed to acquire an interest in numerous Glencore International Plc (OTCMKTS:$GLCNF) zinc mines.

The agreement required “an 80.08% interest in the Rosh Pinah mine in Namibia, a 90% interest in the Perkoa mine in Burkina Faso, an effective 39.24% interest in the Gergarub project in Namibia, an option to acquire a 100% interest in the Health Steele property in Canada, and certain related exploration properties and assets.”

In a report released on the 19th of May, 2017, Stefan Loannou, mining analyst with Cormark Securities, stated that the US $400M Glencore “acquisition will boost Trevali’s attributable annualized zinc production profile by 150% with quality assets, to +385 MMlb.” Loannou further notes that after the acquisition is finalized, “Trevali will be the eighth-largest zinc producer globally and the most leveraged producer with respect to zinc exposure.”

Based on the above numbers, Loannou has predicted the zinc price forecast for the years leading up to 2020.

“With zinc production from four mines expected to ramp up to +450 per annum by 2020, we believe the company is poised to become a (the) marquee mid-tier, pure-play zinc producer in a market facing a significant near-to-medium-term supply issue,” He concluded.

“Hence, we would not be [surprised] to see the company garner a premium market valuation on the back of higher zinc pricing/improving sentiment.” Additionally, Loannou rated Trevali Mining Corp. as a top pick with their target price of $1.85 per share.

According to a May 17 report, James Woolley, metals and mining analyst at Paradigm Capital, has stated that “Trevali’s growth story is coming together at a most advantageous time in the market as increasing supply drive prices higher.

Trevali’s two existing mines are now operating well and generating positive free cash flow, while the recently announced acquisition agreement to purchase two additional mines from Glencore will more than double the production base and elevate Trevali to be the ‘go-to’ name for investors seeking zinc exposure.” To put it simply, those looking to start investing in zinc supply should keep a watch of Vancouver-based company, Trevali Mining.

Woolley believes that Glencore’s transaction is transformative, and he believes that this “will catapult Trevali to be the largest pure-play zinc producer globally, cementing it as the best means for investors to gain exposure to the zinc market. We maintain our C$2.00 target price (based on a 1.25x NAV multiple) and Buy recommendation.”

All in all, the takeaway here is this

If you’re looking to start investing in zinc supply, check out Trevali Mining Corp as it is on its way to becoming one of the top zinc mining companies in the world.

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