Value Investor Mohnish Pabrai Continues To Be Bullish On Horsehead Holding Corp. (ZINC)

Earlier this month, Horsehead Holding Corporation issued an update on its operations at its Mooresboro zinc production facility. The company reported that this facility produced roughly 3,700 tons of zinc metal in June, compared to 4,100 tons in May and 2,800 tons in April. Indeed, this suggests a decline in production compared to the production delivered in May, but it seems that the market reacted too negatively to this update. Horsehead clearly pinpointed that the production was slowed while implementing some improvements at the facility so as to remove the impurities from the system and increase the capacity. In addition to that, 2,600 of the 3,700 tons were produced since June 15, which suggests that the production in July is expected to leave the production figures reported in April, May, and June in the dust.

Horsehead also mentioned that it intends to work on additional upgrades by the end of the summer, which will yet again most likely affect production. However, the planned upgrades will not hold back the production forever. On the contrary, they will surely result in improved production in the upcoming quarters, which will in turn positively affect the financial results of the company. Having said that, it’s quite clear why Mohnish Pabrai’s Dalal Street has been picking up its stake in Horsehead Holding Corp. (NASDAQ:ZINC) as shares have fallen. The reputable value investor seems to be more focused on the long-term performance of the company rather than on its short-term issues.

Horsehead intends to release its financial report for the second quarter of 2015 on August 7, which will shed some new light on whether the company is moving in the right direction or not. Within our database, Jonathan Savitz’s Greywolf Capital Management is among the largest investors in Horsehead Holding Corp. (NASDAQ:ZINC), with 3.63 million shares.

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