might be worth keeping an eye on this one

Kagara Zinc ... the code is KZL

put it on your watchlist

they are going to come out with a review of operations on Thursday

notice they are saying that some of their operations even there zinc mines are cashflow positive

must have an very low cost of production, maybe around 40cents
also their copper operations are cash positive

I'd say century is stuffed now but the copper operations will be cashflow positive

one might balance the other

there is talk of pre-strip costs being taken out of the overall costs of production at Century

i think overall the production is 69c and the prestrip contributes 8c to this
so once done the cost of production will revert to 61 cents

the zinc might stay in the ground and workers might be deployed on this pre-stripping



Unfortunately I don't really understand how this works

just wonder if one of the miners on here might be so good as to fill us in on how this might work

also could they let us know what they think might be the best strategy for the company going forward

thanx in advance
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Kagara initiates operational review

Monday October 27, 2008, 11:25 am


Base metal miner Kagara Ltd has initiated a review of its operations and expenditure after a deterioration in commodity prices.

The company said it was conducting a review of capital, operations, development and exploration expenditure to optimise its cash flows and profits.

Kagara, however, said its copper and zinc operations in North Queensland continue to be cash flow positive at Monday's metal prices.

The company said the results of the review would be released on Thursday, October 30.

http://stocknessmonster.com/news-item?S=KZL&E=ASX&N=426395