Sle, the zinc price (the last time I checked) was above...

Sle, the zinc price (the last time I checked) was above US$0.60c/lb. Being unhedged, KZL will get whatever they deliver in Townsville at this price less the smelting costs. These costs by the way are at historic lows. The operating costs will be around US$0.20c/lb the next time they report. So we are talking about more than 50%, something like 60-65% operating margins. These are insane margins. For a dollar worth of product that they are selling, its costing them 33c to produce. And at the same time, everyone out there is saying zinc is going up.

So if zinc hits say US$0.70c/lb, operating margins expand to 71%. Of course the catch is the level of the AUD, because the revenues they receive in Townsville is in AUD. All general knowledge I know, Im not telling you things you already don't know but anyway, just thinking out loud....

Of course, KZL is now more a gold & copper story as well.