cugsgive it a chance mate. there is a lot of resistance here at...

cugs
give it a chance mate. there is a lot of resistance here at 16.80 because this is where it dropped from when zinc did the friday night dive. in addition to that today is friday so there will be some nervous holders out there who think i am happy to have got out even. when it goes down on monday or tuesday they will feel they made the right decision and wont re enter. only to have it rebound and up through your $17 target.

Just for a laugh have a look at leighton holdings. just announced a $246 mill profit for the half year PE 23 and MC is $8 bill.
look at zfx about to announce $800-$900 mill first half profit and on a PE of 5.5 and MC of $8 bill.

so 4 times as much money to be made by zfx as leighton holdings. yes i know there are many different arguments as to why.
but this is inescapable. at the current earnings rate zfx will have earned its total market capitalization in profit in 5.5 years. in the end cash is king. zfx will either find a great use for it or return it to shareholders.

We can argue about points on a graph and trends and support and resistance etc but in the end a business is about one thing, CASH.

If zfx have a mine life issue which we believe they do, i am confident that management will solve it before it is an issue. the mine life can be aquired and most probably will be. in the short term we have Dugald river, Menninie Dam at reasonable stages and many other joint ventures on the way ie SMA, BSM, DRK and GCR (not sure how good this is).

To me they are outsourcing their exploration work with JV's. there are many excellent juniors with great ground to explore. SMA for eg seem to be an IT company that just happen to have 56,320ha near the Century zinc mine in North Queensland and here comes zfx to fund some drilling with their buckets of cash and to keep the bulk of the project should they find something.
if its a big one the smaller firm may not be able to fund their share of the ongoing and may elect to dilute to a smaller royalty. this leaves zfx with the majority of the whole project.

just my thoughts
cheers