how will interest rate affect the highly leveraged, page-4

I quote from a well known independent research organisation:

As an unhedged producer, ZFX's fortunes are largely tied to the volatile zinc price. Strategy is to remain an integrated lead zinc producer, with a greater mining focus. Copper/gold and niche metal opportunities will be considered. We are wary of the inherent risk in the strategy and potential for legacy liabilities. The company is a leveraged trading play. China influence offers potential speculative gains. The modest forward PE is attractive, but the business is capital intensive and mine life modest. Zinc is near historical highs which traditionally justifies a low PE for such a stock. The balance sheet is robust.

... (Last Updated: 28/07/2006)
We maintain our Hold recommendation but are becoming concerned with the potential for falling zinc prices in a rising cost environment. It is difficult to see large zinc price driven upside from here given the huge run in the stock. Conservative investors should limit positions