zinifex...one for the lazy bull, page-33

interesting read re: resourses This is what Alan Kohler had to say re: 2006 the year ahead. Interesting his views on ZFX. Interesting if you hold i suppose.

"1. Resources
Mining and energy companies are currently valued for a decline in commodity prices next year. The extent of those can be judged from a research note put out last week by UBS, in which the analyst keyed current spot prices for commodities into the firm's valuation model instead of 2006 forecasts.

As a result of doing the valuation, BHP Billiton changed from $18.61 to $43.86 (the price now is around $23.30); the valuation of Rio Tinto doubled from $51.21 to $109.51 (current price around $69); the valuation of Zinifex goes from $3.74 to $11.09 (current price around $6.80).

This indicates a key decision for an investor to make, is whether commodity prices will, indeed fall next year. Do you believe Marc Faber's (he's the legendary Hong Kong based investor) hypothesis that real commodity prices are around 200 year lows and have begun a long term uptrend, or do you think the boom is close to ending because the Chinese miracle can't last? Personally I think it can last and I'm with Marc Faber. "