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Ferrum Crescent Limited

Zinc favoured by the investment community

8/09/2016

NEW STRATEGY. NEW START.

9

“Zinc: The Revenant

After a decade in the wilderness…

It is coming up to a decade since zinc prices topped out at $4,580.

Unprecedented concentrate deficits are emerging now, which we think will underpin a rapid tightening in the

refined market over the next 12 to 18 months.

A potential 1Mt concentrate deficit this year is occurring on the back of a >300kt deficit in 2015, resulting in a

significant refined deficit this year and sowing the seeds for a record refined deficit in 2017.

…zinc finally set to reach new record highs

The scale of the potential deficit between mined production and refined consumption looks set to tighten both

the concentrates market and the refined market.

Refined deficits of 550kt in 2016 and 660kt in 2017, representing nearly 5% of refined consumption, will rapidly

destock the zinc market and will provide the foundations for zinc to reach record high prices in the next 24

months.

(March 2016)