Metalicity (ASX: MCT) - Unique Zinc and Lithium Exposure
Metalicity is one of the rare ASX-listed situations that offer investors exposure to both zinc and lithium. Why is this interesting? Well, zinc was the second-best performing commodity last year (up 88%), behind only coking coal (up 250%). Zinc is being driven by major supply-side factors in the form of ageing mines and a dearth of new, large-scale replacements. Lithium is an intriguing commodity because of a vast wave of demand growth, predominantly related to the burgeoning electric vehicle market. End-users want security of supply and Australia is better placed than most of its geo-politically challenged competitors (like South America) to be able to deliver. Which is why Metalicity is such an interesting proposition. In zinc terms it owns the vast Admiral Bay deposit in WA, one of the world's largest undeveloped deposits. In lithium terms it maintains highly prospective acreage in the Pilbara - one of WA's best lithium addresses. Metalicity is up more than 200% since our initial coverage at $0.025 in Oct 2015, but its unique zinc-lithium exposure should help drive further strong interest during 2017.
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Gavin has been a senior resources analyst following the mining and energy sectors for the past 25 years, working with Intersuisse and Fat Prophets. He is also the Executive Director, Mining & Metals with Independent Investment Research (IIR).