re: being re-rated Just be careful guys of the 'buy on rumour sell on fact' occuring. I think $1.40 is achievable short term but like I said be wary of the report coming out. Market will look at cash costs (anything below 25c/lb is good, closer to 20c even better) anything above and it will be a short term crunch in the SP just as quickly as we went up. Also look at the cashflow from operations: it has to be positive big time, anything average will not be good for the SP.
That said, KZL hasn't moved with this kind of authority and conviction for at least 2 years so it gives cause for optimism. They should make $20-25M net profit this year so a market cap of 200-250M is fair value considering they do have a LT operation going. So you work out the share price: something around $1.20-1.50 is ok. Exploration success of course changes the picture. KZL was obviously undervalued at 90c or so not long ago so its good to see it being re-rated. Lets just hope the qrtly doesn't dissapoint and that that KZL cash generating ability and low cost qualities are fully evident. And of course, some exploration spice would be nice :)
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re: being re-rated Just be careful guys of the 'buy on rumour...
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