Metals and mining have always been an important segment of the global economy, however, when most investors think of them, they typically think of precious metals such as gold and silver, or industrial metals such as copper. In recent years mining of rare earth minerals such as lithium has ramped up as the electric vehicle market has grown rapidly. Another metal that is critical to the construction of buildings and railways, and the manufacturing of automobiles that is often overlooked is zinc.
Zinc is the third most commonly used non-ferrous (not containing iron) metal in the world, after aluminum and copper. Its primary use is to coat iron and steel which prevents corrosion, so zinc is vital to the construction of commercial, industrial, and residential buildings as well as to global infrastructure such as bridges, tunnels, and railroads. Zinc is also used in batteries and energy storage solutions, providing an additional and growing use case for the metal.
A pure-play mining and production company for zinc is the Canadian company ZincX Resources (TSXV: ZNX) (OTCQB: ZNCXF). The company has two main projects, the Akie Cardiac Creek and Kechika sites consisting of over 116 square kilometers and 46 mining claims in British Columbia, Canada. A Preliminary Environmental Assessment (PEA) has valued the Akie project at a Net Present Value of $649 million with a base case of $1.21 per pound for zinc. Zinc has been trading in a range of $1.40 and $2.00 per pound in recent months, and the upper end of that range translates into an estimated project value of $2 billion. The project is located in a stable jurisdiction and has ready access to power sources, roads, and an airport.

Pure play zinc producers are rare in the publicly traded markets, and ZincX is a very small company with a market cap of only $16.9 million. This small size makes the company an attractive takeover target for major miners who need to increase their zinc production capacities such as Tongling, Korean Zinc, and Teka. The world is facing a chronic shortage of zinc, which has been exacerbated by the recent closure of several zinc mines called Skorpion, Perseverance, Brunswick, Century, and Lisheen. Few new mines are coming on line, which should continue to put upward pressure on zinc prices. Another catalyst for growth is the push by national and local governments into green energy so greater amounts of zinc will be needed for the energy storage solutions that facilitate these initiatives. Zincx is also considering a spinoff of regional projects into another publicly-traded company for the benefit of existing shareholders, which could unlock value.
The world’s appetite for zinc is growing, and pure-play zinc miners are few. With price appreciation likely for the metal, and big miners on the hunt for acquisitions, ZincX has two major avenues for upside in the coming months and years. This Canadian microcap producer is worth putting on investors’ watchlists as a way to gain exposure to the future production of infrastructure projects and green energy storage.
Disclaimer:
Spotlight Growth is compensated, either directly or via a third party, to provide investor relations services for its clients. Spotlight Growth creates exposure for companies through a customized marketing strategy, including design of promotional material, the drafting and editing of press releases and media placement.
All information on featured companies is provided by the companies profiled, or is available from public sources. Spotlight Growth and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. The information contained herein is based on external sources that Spotlight Growth believes to be reliable, but its accuracy is not guaranteed. Spotlight Growth may create reports and content that has been compensated by a company or third-parties, or for purposes of self-marketing. Spotlight Growth was compensated one thousand dollars cash for the creation and dissemination of this content by a third party Guerrilla Capital and Ryan Yanch.
This material does not represent a solicitation to buy or sell any securities. Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company’s plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management.
The above communication, the attachments and external Internet links provided are intended for informational purposes only and are not to be interpreted by the recipient as a solicitation to participate in securities offerings. Investments referenced may not be suitable for all investors and may not be permissible in certain jurisdictions.
Spotlight Growth and its affiliates, officers, directors, and employees may have bought or sold or may buy or sell shares in the companies discussed herein, which may be acquired prior, during or after the publication of these marketing materials. Spotlight Growth, its affiliates, officers, directors, and employees may sell the stock of said companies at any time and may profit in the event those shares rise in value. For more information on our disclosures, please visit: https://spotlightgrowth.com/disclosures/