Geologist/Investment Advisor Matt Badiali and the importance of investing in zinc
— Matt Badiali (@Matt_B_Guru) January 16, 2018
Matt Badiali, a geologist and advisor on metals investmenting, has been focusing on zinc, a common alloy for electronics and cars where the galvanizing process prevents rusting by coating iron or steel with a thin layer of zinc.
Matt reports that the price of zinc rose from $0.66 per pound in January 2016 to $1.45 per pound 21 months later, due to a growing zinc shortage: in 2016 alone, we consumed over 1.4 million more tons of zinc than the world’s zinc mines produced.
During 2016 zinc mine closures resulted in more than 1 million tons, conservatively, in lost production compared with the previous year. At the same time, exploration was virtually nonexistent, a classic setup for a rise in the price of a resource. Matt Badiali cited the London Metal Exchange company’s plans to roll out a new zinc exploration venture at precisely the right time, when prices were starting to rebound.
Companies that Matt Badiali discusses include Teck Resources, a well-known zinc miner whose share price bottomed out in early 2016 along with the price of zinc but whose stock gained 875% by November 2016, and Hudbay Minerals, a smaller, $1.7 billion mining company in Manitoba, Canada whose Lalor mine has some 1.9 billion pounds of zinc reserves, and whose 777 mine has about 670 million pounds of zinc. Also, Matt calls Lundin Mining, a $4.1 billion global base-metal mining company based in Canada, one of the best companies in the world at turning cash into assets.
Matt Badiali holds a B.S. in earth sciences from Penn State University and a Master of Science in geology from Florida Atlantic University, and has worked in finance since 2004. He advises on investments in metals, energy and natural resources in Banyan Hill Publishing’s Real Wealth Strategist newsletter, which Matt initiated in May 2017 and is aimed at the average individual who is looking to invest. Matt also writes on medium.com about natural resources including copper, uranium, platinum, gold and oil as well as zinc.