re: kzl - serious cash machine/mining stocks I still hold these...

re: kzl - serious cash machine/mining stocks I still hold these and will for some time yet. KZL is going to be making some serious cash as the high grade Surveyor ore is dug up. Grades here are approaching 20% zinc and costs expected to fall below US20c/lb are one of the lowest in the world. These guys are forcasting annual cashflow approaching $40M.

Also, Stage 2 expansion of Mt Garnet will achieve approx 120KT zinc concentrate by year end.

The exploration season has kicked off with Kagara focusing on focusing on the tremendous potential of their Mungana and King Vol areas. Success here could mean a second plant to be built in this area. This would take the company to the next level.

They also have their high grading copper deposits at Balcooma. KZL has said that they will dig and deliver these pretty quicky and take advantage of the current state in the copper market. Copper circuits have been installed.

There is also high grading gold deposits on its Northern Deposits and while more work is needed here, it is a valuable asset for the company.

Management, led by Kim Robinson is first class, and his constant on market purchases from 60c onwards are very conforting.

All in all, a first rate miner and long term shareholders will be rewarded especially if you like the commodities markets for the next few years (which I do).

I believe though that the easy money has been made with a lot of commodity stocks. Look at the metals charts and they will tell you a story. Commosities have gone up exponentially already! When I see some of these new HC posters pushing some mining stocks (I wont say which ones) it makes you think that no one learnt anything from the internet bust! A hot sector and dud stocks with no hope of ever producing any cashflow are being bought on sheer irrational optimism.

China, New Economy, always some bulllshit story. A lot of people will be burnt again.