VayamaI read the KZL announcement too quickly and did not take...

Vayama

I read the KZL announcement too quickly and did not take in that the profit figure of $130 m was before tax.

Your basic figures appear right (always assuming that the 30% rate will be the average that will apply in 2006-07), but

. the resource that was to be mined in 2006-07 but was not has not disappeared, so its value can be gained in a later year;

. KZL's consensus estimated earning are around $185 m in 2008-09 (Etrdae source), as I recall, which places a value of over $8 per share (PE of 10) by then

. Huntley's which tends to value companies fairly conservatively currently places a value of $6.20 on KZL;

. KZL is moving rapidly to explore its Forrestenia nickel tenements. I have seen estimates suggesting this alone now adds over $1 to KZL value. The added value could be much higher (just think of WSA).

. KZL has other highly prospective tenements.

I suggest you delay any purchase of KZL until commodity prices fall, becuase that will be one of the key factors in determining KZL's price. If commodity prices do not fall significantly then the $6 price may be maintained.

Good luck

DYOR

Loki