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Tinka Resources: THE INVESTMENT CASE

Tinka all set for a zinc surge

Zinc was the year’s best performer among constituents of the Bloomberg Commodity index in 2016, surging by 60%
Zinc
INVESTMENT OVERVIEW: TK The Big Picture
Think zinc; think Tinka

Zinc could result in the chink of cash for junior explorers like Tinka Resources Limited (CVE:TK) as the company's activities nicely chime with forecasts for a jump in the commodity’s prices in 2017.

To put the excitement into some kind of order, the Bloomberg Commodity Index, which tracks returns for 22 components, climbed 11% in 2016, entering a bull market in June – the first time the index has risen since 2010. Zinc was the year’s best performer, surging by 60% amid supply shortages and mine cutbacks.

With that kind of backdrop, it would be hard for Tinka to put a foot wrong as it waltzes to greater investor applause.

Think zinc

The chief executive of Tinka Resources, Graham Carman, himself agrees. In August he told Proactive Investors' StockTube that the fundaments for zinc are “absolutely fantastic”.

Certainly, the share price moved up a gear in May 2016 from a range of C$0.10-0.15 to above C$0.20 in the second half of the year.

It performed solidly in the second half, reaching mid-2015 highs, and zinc prices rising can only be good news for the stock.

Money managers boosted their combined net-long position, or bets on price gains, across 18 commodities by 9.7% in December, US government data showed, and that’s a reversal on a year earlier.

So, there is a lot to be optimistic about in the Zip-a-Dee-Doo-Dah outlook for zinc.

Tinka making progress at Pucarumi and Ayawilca

Tinka has also been active on the business front, with a series of milestones passed and more to come.

At a time when zinc supplies could be squeezed in 2017, it was therefore capital that Tinka’s most recent news was of a zinc find. Just last month, the company discovered a new high-grade zinc prospect at Pucarumi located several kilometres northwest of the company's 100%-owned Ayawilca inferred zinc resource.

Tinka also got the nod from the Peruvian government in November when it reported its environmental impact assessment for the Ayawilca project had been approved.

Perhaps one of the most prestigious events occurred the same month. Not many smaller capitalized stocks can boast an investor the size and significance of a supranational, but that feat landed in Tinka’s lap when the triple-A rated International Finance Corporation, a functionary of the World Bank group of supra investors, increased its stake in the business to 14%.

So, with continued strides in Peru and further gains in the price of zinc, Tinka Resources is all set to embrace the opportunities that 2017 may bring.



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Tinka Resources Timeline

Newswire
February 21 2017
Newswire
January 26 2017
Video
December 02 2016

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