ZFX zinifex limited

how will interest rate affect the highly leveraged

  1. 29 Posts.
    It's interesting to see how this time the rise in interest rate will affect the highly leveraged zinifex. Apart from that the capital costs continues to increase, and the life of the mines at zinifex are still so limited, plus not having Oxiana kinds of management. Cash is good, but they will soon need it to pay interest for loans. So the other thing, will the US increase their rates? Although the news are not out yet, but i gurantee the answer is NO. I think what the US really should ask them is have they overdone like some analysts agree, and have they got the plan to face an economic slowdown, possibly even near the edge of recession? Well, as a matter of fact, some are predicting a rate of 1.5% in the next quarter, that's kinda scary. Not good for the zinc market, and not good for ZFX. However, there are still some good sides about ZFX, but some people believe it's already reflected in the share price at the moment. Unlike for large and differently structured companies like BHP, RIO, or even OXR, ZFX is playing dangerously in my opinion. Merrill Lynch (I think the biggest in the world? or UBS? not sure but that's not the point), is predicting $6 per share target, I really don't think they are joking around with figures, and they have a point. And I guess if they are right, they win themselves a lot of new customers and trust. But personally, I don't want to hurt any companies, and will stay neutral. Just some thoughts, any comments welcomed.
 
watchlist Created with Sketch. Add ZFX (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.