hang in there

There is no need to state the bleeding obvious about the performance of ZRL in terms of shareholder value. There is however, much to be said about what has happened behind closed doors and what we are likely to see in the future.

A key note from the annual report. "The share price has not reflected the true value of the company". and they should have added, "and its fantastic efforts".

Sovereign risk is an issue in a place like Zambia, however, all of the big miners are there, it is growing rapidly and the government is actually doing a great job of supporting mining growth and the associated development of infrastructure. Further to this, they are not going for the jugular on royalties and taxes which many developing nations do and effectively cruel the industry before it even takes off.

We have a current market cap of a mere $10M AUD.

We also have 200,000t of contained copper in the main deposits. We have AMC on site in Zambia right now doing the final audit of the data and systems such a revised resource statement can be released. Read revised as >200,000t of copper. This revised resource statement won't be far away. My guess is 6 weeks tops.

We have a scoping study to start soon, we have planned production in late 2013. Minimum 15 years mine life - based on current estimates.

So, market cap $10M. In ground resource $1.4B and I expect this to increase quite significantly.

Sure, there is always risk, but short term cash is OK with a facility for a further $5M drawdown. They actually don't spend a lot per quarter and are quite frugal.

It's a punt, but, I have been looked at far more riskier investments in the past, many of which did have as much potential upside as this one.

There is much more I could say about Zambezi, but best you look for yourself if you are interested in a speculative play with excellent potential.

Enjoy your weekend and hang in there if you are already in deep with this one is my recommendation. I won't put a price target out there, but I can tell you its a long way north of where we are now.

PS: I only hold 6 different stocks in total. This is one of them. I am not the little bit in every spec stock I can find type of investor.