yield versus zinc and lead varibles, page-4

$28 by this time next year......thats brave.

I saw several brokers saying that it should be trading at that range on the spot price in theory. But there are 3 problems:

1. Longevity of mine issue (which they will sort out- Wolf etc).
2. DCF analysis of the future POZ going forward beyond 2008 - when new supplies come etc.
3. Mindset: The general discount (PE) that many miners are trading at in 2007 (which is caused by expected future commodity prices) but has also lowered the bar at which these miners trade in the mindset of all investors.

Bottom line is I think that ZFX is a cash machine that is lucky to be around at a time where it can afford to become a global player. A company in the making just as BHP once was all those years ago.

The ball is in managements hand.

Look at John Fletcher - stuffed up Brambles, now Coles
Look at Coles CFO - destroyed southcorp, now Coles.

TheGimp