good quarterly report , page-11

Loki01
They were trying to bring admiral bay into production during the next expected cycle, most metals analysts as well as Robinson believe that there has been so much underinvestment in zinc that it will be in deep deficit by 2010 - 2011 i have to say that i agree with this analysis.

A lot of analysts think that zinc fundamentals are better than nickel, nickel basically has only one use and that is stainless steel.

A lot of large zinc mines are due to be exhausted over the next few years and there is nothing in the pipeline to replace them, AD Bay would be well positioned to take advantage of this. It is most likely Century will close, this removes 500,000 tons from the system.

The infrastructure building that will be going on in China and India over the next 50yrs will consume vast amounts of Steel and zinc and it is this demand and the lack of large world class deposits that will drive the zinc price. you will see China starting to stimulate domestic demand and spending a massive amount of money on infrastructure to keep the economy steaming ahead.

I agree that KZL debt is not good at this time, but you must agree that to grow a company you do need to borrow at times, this does leave you exposed to a degree but who could have forecast the worst crisis in a hundred years was going to happen and cause an unprecedented collapse in metals prices right at the very time we owed money.

KZL is in the lowest cost 25% of world producers and by rights should of been able to weather any price cycle, no mining company that i know of predicted the absolute collapse of metals prices, even the majors were caught out and many other miners have found themselves in the same boat.