today's the day, page-36

To summarise....

Analysis

The $18m in funding is a key piece of news and a milestone to finalise the Bankable Feasibility Studies (BFS) at the Mbila and Kangwane Central projects. It provides maximum flexibility as it develops the projects.

Although under the radar of late, ZYL has two company maker projects which can meet both the domestic and export markets demand for high quality anthracite which is a cost effective alternative to supply-constrained and more expensive metallurgical coal, and its final processed product, metallurgical coke.

The Mbila and Kangwane assets provide ZYL with a strategic holding in the niche global anthracite market. Kangwane offers excellent scope for near term production via a low cost, open pit process in the southern section of the concession.

Signficantly, ZYL has received expressions of interest for some 4 million tonnes of anthracite annually from both Mbila and Kangwane; this is well in excess of the combined annualized production target of 2.5 million tonnes.

We believe that newsflow and catalysts for re-rating of ZYL are near. The re-tracement in share price and market cap. of ZYL provide a significant opportuntiy for investors. ZYL stands to become a strategic player in the niche global anthracite market