kzl - macquarie research, page-3

re: kzl - a gold & copper producer!? Whetu, that bottleneck was old news, this report came out before the quarterly, I just checked the date. What they say about Mungana (18page report by the way before the ann. of the $15 raising to fund the exploration) is that it might be a repeat of the Red Dome deposit nearby. Red Dome was previously mined as a gold-copper deposit and during its 10 year life (ceasing in 1995), it produced over 1moz gold at an average grade of 2.7g/t gold and 0.4% copper:

"After comprehensively reviewing the exploration results
to date, Macquarie is increasingly of the view that the
Mungana gold-copper porphyry system could be a tiger
that KZL has so far only gripped by the tail."

Stuff what Macquarie says, KZL's management and Korea Zinc are going to drill the crap out of it & put up $15M to prove it is!

Just on current reserves, they value KZL around $1-$1.30, conservatively while acknowledging that further extensions to mine life is very possible, thus increasing NAV. This is basically in line with what we were saying. However, it is looking very likely that KZL will be transformed into a gold & copper producer. Upside $1-1.50 on top of the current valuation.

I think in six months to a year when we look back at the share price of KZL we will be amazed at just how undervalued it was at $1 or so.