re: give it a valuation..just for fun/jebjabre.. Hi Tas,I've...

re: give it a valuation..just for fun/jebjabre.. Hi Tas,

I've owned KZL for about three years now. I've added to my position from the sale of IGO. Their current resources are enough for at least a 10 year mine life, more than IGO. They are producing zinc at $US25c per pound with the goal to go below $US20c per pound. The current zinc price is about $US55c or there abouts. These are excellent operating margins you have to agree.

On full year production of zinc/copper/lead of 130,000t, which the Mt Garnet plant can handle, at current prices/exchange rates, they will be making about $35M per annum net profit. A new plant at Chillagoe when they sure up gold and copper resources there, could double the size of the company both in terms of mine life and profits. They are expected to produce up to 200K ounces pa of gold. The two plants are also strategically located near Townsville from where the ore is shipped.

As far as metal preference, I don't have any, generally commodities should be still doing ok during the next few years at least. The thing is either undervalued or not. KZL is. The market is still uninterested about IGO because it has only a 5 year mine life with Long and hasn't shown where future growth is going to come from. But that's just my view.