very low cash at 30 September, while debt is substantial
Full cost of zinc production being cross subsidised by profits from copper production. If copper price falls under about $US 1.50 then KZL may have to sell assets to stay solvent.
A lot of money has been spent on Admiral's Bay which would have been far better spent exploring Forrestinia Ni deposit. This was fairly pointess exercise unless you get a big partner for AB.
No dividends for how many years to come?
I think KZL's management has been too lax, and its CEO is over-paid.
KZL has been rightly punished, at the cost of long term loyal shareholders.
KZL still has lots of potential, so it is worth holding, so long as it can remain solvent until Ni, Zn, Cu, Pb prices pick up.
There has not been enough realistic analysis by KZL shareholders here.
The positive is this is not CBH or PEM, more like a smaller OZL but with a much better Ni prospect (I think).
loki
KZL Price at posting:
44.1¢ Sentiment: Hold Disclosure: Held
