I think thats a bit overcooked.Zinc was higher when that note...

I think thats a bit overcooked.

Zinc was higher when that note was published, and of course they just given away 12% of the project to the Chinese.

Also I believe Comsec underwrote their last cap raising? - and brokers always seem to get carried away on valuations when they have a vested interest.

BUT - zinc will recover. The Chinese economy is showing a lot of resilience. As shown by this purchase they are very keen to buy quality hard assets going cheap around the world.

I'd say that conservatively you could see this getting to $1 in the next few months, and then move steadily towards $2-$3 over the next couple of years as Tala Hamza is developed.

Of course if zinc supply is really held back, and I read today that with OZ Minerals possibly going into recievership then that is increasingly going to constrain supply, then the zinc price will recover faster and so maybe Comsec's $5 plus valuation will prove to be accurate, but not this year, maybe 2011.

So there is multi bagger potential here (5 maybe 8 times your money in 2 years)

I am going to stick with them - unless they mess things up and from the way its been handled so far by management I dont see that happening. The directors have a decent sized stake and they'll be as keen as the rest of the shareholders to do this right.