have not heard any negative news about ozl, page-33

No need to be scared.

I would suggest three points to consider to an aquistion.

1)Make it large. The larger it is the less competition. The less competition increases the chances of a good deal.

2) Incresase debt. A company with no debt is disadvantaged in tax. A geared company (up to 50%) can grow better provided the loan is not called in.

3) Make is simple. Complex mergers for diversifing risk are the worst strategy because they limit growth to the Stock Market Index and reduce the effects of synergy. Focused value investing leverages expertise in an area with a low learning curve.

Using this formula it would be best to borrow money to buy another mine at a good price towards the aim of increasing scale and decrease costs. If they could do it in such a way as to monopolise the zinc supply, albeit unlikely, then that would be good.

I know it sounds boring but the right thing to do often is.

Ryan