Mine supply in zinc remains very constrained. Zinc is the one metal that deserves a re-rating based on physical demand and supply characteristics alone.

Exits from the baskets could have a disproportionately larger impact on the less-liquid metal markets.

Supply isn't going up as much as demand so the prices of metal, especially that of copper and zinc, are going up.

Zinc is a base metal. And it is an internationally traded commodity and its supply source is not limited to small areas. This falls outside the definition of metals for stockpiles.

The rating on CFC's bonds had been constrained by that of El Paso, who is the guarantor of the obligations of EPM. Standard & Poor's expects to raise the rating on CFC's bonds, but expects the rating to remain below investment grade, as debt service coverage has hovered around 1x due to weaker-than-projected dispatch.

Base metal prices have been much firmer lately, with declining inventories for zinc pushing up prices.