Alex Bossert
Long only, deep value, value, special situations

Horsehead Holdings Is Significantly Undervalued As New Low Cost Facility Is About To Open

Horsehead Holdings

Ticker (ZINC)

Last price: $17

Market Cap: $854 million

Summary

Horsehead Holdings (ZINC) is at an inflection point as they shift production to new zinc recycling facility that will lower their cash breakeven price of producing zinc, making them one of the world's lowest cost producers. Horsehead's use of recycled electric arc furnace (EAF) dust feedstock sourced from the steel industry gives them an enduring and sustainable competitive advantage. Once the new facility is complete, Horsehead's cash breakeven cost of producing zinc will be below the lowest price zinc has traded for in the past 10 years and the second lowest cost of production of any zinc producer in the world. Unlike their competitors, the cost advantage will...

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