Star Mountain Resources, Inc. (SMRS) Gears Up for a Profitable and Safe Future

The global zinc industry is currently suffering a supply shortage, which translates to good news for Star Mountain Resources, Inc. (OTC: SMRS). SMRS is gearing up following its recent acquisition of Balmat Holding Corporation. The Balmat mine in upstate New York has a long history of successful zinc production. Zinc mining companies have been shut down in China and Australia, amounting to about 10% of the total world supply, according to Haywood Securities. Acquiring the Balmat Zinc Mine means SMRS is positioning itself for success. According to its Industry Guide 7 Mineral Reserve report (IG7), the Balmat Mine will require a minimal investment to prepare for production. At the same time, projections for the next 2.5 years and 8.5 years show potentially large profit margins due to rising zinc prices.

 

The Balmat Mine is located in upstate New York in St. Lawrence County, about 1.3 miles away from Fowler. It was initially opened in 1930 and worked for 71 years until production was ceased in 2001. Production and mining was resumed between 2006 and 2008, when it was stopped due to another drop in zinc metal prices. The Balmat Mine has produced more than 30 million tons of zinc since it was opened and never ceased production due to issues with the mine itself. In addition to that, the IG7 report confirmed that the mine is well-situated, capable of producing high-grade zinc, and can be placed into production with minimal expense and time.

 

On another note, Haywood Securities has stated that zinc price predictions have been very conservative this year, and the firm still estimates zinc to be at a healthy $1.20 per pound in 2018. The last time zinc inventory levels hit a critical low was in 2006, causing zinc metal prices to spike to $2 per pound. The IG7 also shows promising results as the mineral reserve estimate dictates the zinc produced would be high-grade zinc concentrate suitable for sale to smelters around the globe.

 

However, Star Mountain Resources Inc. is not only working toward meeting its financial goals. The company also has a clear vision to responsibly develop great assets while maintaining a strong focus on their core values. These include the safety of all employees and local communities, promoting sustainable growth and maintaining high standards of respect for all the people involved in each project. In addition to this, the company always aims to improve the communities of which it becomes a part, as well as providing transparency and honesty to all stakeholders, and SMRS is passionate about improving its practices wherever it can.

 

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This entry was posted in Star Mountain Resources Inc. SMRS on April 27, 2016 by QualityStocks.

 

 

 

Source: DreamTeamNetwork (April 27, 2016 - 9:30 AM EDT)

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