A mega-merger between Xstrata and Glencore International could make waves in the global commodities market.

The Royal Bank of Scotland (NYSE: RBS) lowered its expectations for all other metals, but remains bullish on gold.

Gold and silver are sexy, sure. But spare a though for plain-Jane zinc.

Zinc is used to galvanize steel to prevent corrosion. It’s used for die-casting, especially in the automobile industry. It’s also used in rubber and paints, for galvanizing iron, for electroplating, electrical fuses, fungicides, cable wrappings…

In a nutshell, where the economy goes, there goes zinc. And with China’s industrial boom still hurtling onwards, zinc demand worldwide seems set to grow apace, with some predicting a major supply gap within the next few years.

Which brings us to Breakwater Resources (TSX: BWR).  While the Canadian miner produces other base and precious metals, the company’s focus is zinc. One of the most highly leveraged zinc plays currently, Breakwater has three zinc mines in production – in Canada, Chile, and Honduras – and is bringing a fourth into production, the Langlois mine in northwestern Quebec.

And yet it trades at a significant discount to its peers.