Minco hopes for zinc price rebound

Edward Power

Irish mining company Minco has predicted an improvement in its performance with a recovery in world zinc prices anticipated next year.

With zinc expected to rally, the firm's share price has climbed 200 per cent in recent months, chairman Mr John Teeling told the company's annual general meeting in Dublin yesterday .

Likening the current low worth of zinc to that of gold a year ago Mr Teeling said Minco was ideally placed to capitalise on the anticipated upswing.

"A year ago nobody would have believed there would be a bull market in gold by the end of 2003. Yet it has surprised everyone by turning around very strongly," he said.

The company, which reported a €115,181 loss for 2002, is to increase substantially exploration activity next year, with the costs met by a recent €1.4 million million fundraising.

Minco is especially eager to explore gold projects in Central Asia and has started to accumulate data from the region.

It also has high hopes for its silver project in Mexico. Silver has risen strongly in price this year and there is a widening gap between supply and demand, said Mr Teeling.

Negotiations with Mexican authorities continue and the company hopes to begin a feasibility study in early 2004.

Gold exploration is planned for the Goldmines river era in Avoca, Co Wicklow.

A drill target has been identified and work will begin shortly, said Mr Teeling.

The meeting approved the election of Mr Roger Turner, Mr Richard Thornton and Mr Matthew Dorman to the board.

Authorisation was also given for the share capital of the company to be increased to 2.5 million from 1.37 million through the issue of 90 million new ordinary shares at 1.25 cent each.