specific reason why cbh is best, page-3

Kagara Zinc......$1 billion zinc/lead/copper producer out this afternoon with an ASX profit guidance release.

They are still growing , but suggested EBITA 2006/7 of just $230 million.......certainly does nothing to temper views that CBH is way undervalued. (EBITA $230m is about $130m nett - my estimates)

Note their total production in 2006/7....and compare with CBH's Sulphur Springs...(their 3rd mine from 2008)

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Kagara flags jump in earnings in 2006/07 on higher production
Source: PERTH, Sept 13 AAP
Published: September 13 2006, 6:09PM

Base metal miner Kagara Zinc Ltd expects its earnings will grow by more than 200 per cent this year on the back of higher production and the strong commodity cycle.

Kagara today posted a net profit of $35.6 million for 2005/06, up from $10.5 million in the prior year, on the back of strong sales.

Earnings before interest tax depreciation and amortisation jumped by 155 per cent to $73.4 per cent and Kagara has forecast a further 215 per cent increase in 2006/07 to $230 million. advertisement

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Kagara said copper production would increase by 380 per cent to 25,000 tonnes, zinc would move up 48 per cent to 52,000 tonnes and lead output would grow by 61 per cent to 15,000 tonnes.

The company is commissioning a new plant and is part way through developing a new mine, Mungana, in Queensland.

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Work on a bankable feasibility study and an environmental statement is nearing completion for a 1.25Mt p.a. open-cut mine and ore processing plant to produce 65,000 tonnes per annum of copper concentrates (25% Cu) and 75,000 tonnes per annum of zinc concentrates (53% Zn).

The main deposit comprises volcanic-hosted massive sulphide mineralization, discovered in 1989 by Sipa. In 2003, Outokumpu Zinc Australia, which was in a joint venture with Sipa, completed a Bankable Feasibility Study to develop the project as an underground operation. A decision to mine was not made by Outokumpu due to a corporate decision to exit mining world wide at a time of low metal prices.