ZFX are still fundamentally cheap and should announce a FY 2006/07 NPAT of $1.2bn+ before the market opens on Monday. H1 to 31/12/06 NPAT was $751m and I believe ZFX could well surprise to the upside.
Cash flow is strong and enormous relative to it's market cap and the pending spin-off of the smelting assets will result in ZFX being a highly profitable company with a huge war chest.
Post spin-off the highly cashed up and profitable ZFX becomes a very attractive take-over target.
Contrary to popular opinion, I believe the outlook for the price of zinc is healthy as LME zinc inventories continue to trend lower to record (low) levels. Zinc prices will soon rise to reflect this.
Lead is at record levels and this is great for ZFX.
Consider purchasing a few ZFX calls today ahead of Monday's release and you should reap the rewards
ZFX
zinifex limited
