A lot of base metals have increasing stockpiles through the London Metals Exchange, so there is some short-term consterntion in the invesmtent community that the demand/supply equation is unequal.
Best thing for KZL is irrespective of this they returned to profit in the last quarter (while these stockpiles were high and demand still depressed relative to pre-GFC levels).
KZL almost went to the wall because of their debt situation which is now resolved with basically no nebt det, so it's hard to imagine (even if the world falls in again) that they will be so perilously close to administration.
If you think eventually demand for base metals will be restored to more 'normal' levels then the current price is a steal IMO, although I have a longer term perspective than perhaps some looking for a quick trade.
JT
KZL Price at posting:
88.5¢ Sentiment: Buy Disclosure: Held
