When you have read all the CZL promises over the last year plus...

When you have read all the CZL promises over the last year plus it is easy to see why the SP has dropped so far.

But I for one ( and I am nursing a significant loss on these babies) can see light at the end of the tunnel. The June update had some glimmers of hope mixed in with more ongoing disappointments! Just think in June update they reported that even with all their problems they had delivered an unaudited EBITDA of $195,000 for the quarter and $378,000 for the year. This weeks presentation, however, was brief but laced with some big positives and most of last quarters problems were nowhere to be seen.

Imagine, if they are solved and production is up in terms of throughput and recovery rates, and Zinc prices are increasing, CZL may even deliver some real profits with a positive cashflow that can support ongoing upgrades to further enhance production and recovery. Further to this we must be close to getting access to the richer ore which could further improve profitability. It is almost like my dog at feeding time; the sleepy lazy things has jumped up and is even showing signs of love for me!

Don’t want to get ahead of myself as the quarterly will provide more confirmation of the real picture but if CZL have turned themselves around and can deliver say $350k/qtr or $1.4mpa profit this year that would mean with a P/E ratio of say 8 they would climb back towards the 5c SP mark they enjoyed back in January. Wouldn’t put them in dividend territory or on my list of best buys but they would at least be back on my radar as a possible success. The question I ask myself; Can CZL snap defeat from the jaws of victory? I hope not but history has shown………..