Summary
Zinc and copper are in a similar situation, low prices over the last few years have put off investments, limiting future supply growth, while demand kept slowly growing. Consequently, a big supply gap is expected to open sometime over the next decade. However, a likely recession or global economic slowdown, as we are in the late part of the economic cycle, would severely hit commodity markets and zinc miners.
The best investment approach one can take in such a situation is to go through each potential investment, make earnings models, estimate the miner’s strength