shaw upgrade

zfx downturn overdone


ZINIFEX (ZFX) @ $10.02 ST: Buy
* Share price corrected 45% from A$18.70 in October 2007, ~A$4.0bn in lost market capitalisation.
* Trading at a discount to NPV of up to 30% based on our numbers using US$0.80 zinc and US$0.85 lead long term.
* Dividend yield of >13.0%.
* PE for 2009 of 10.2x.
* Bid for Allegiance Mining (AGM) ongoing.
* Recommendation upgraded to a Buy/High Risk following price weakness, with a revised 12-month price target of A$15.00ps.