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jebigabre
10-01-2005, 02:28 PM
This zinc/copper/lead miner is one of those quiet achievers that hardly gets noticed by the market. It was listed in 1999 when the Internet bubble was just about to pop, acquired land and orebodies at dirt cheap prices and has gone about its business of mining in a no fuss way. At a market cap of $165M, its not exactly a minnow but there is a reason for that.

KZL is going to be a cash producing machine. Zinc costs are going to be below $0.27c/lb and zinc is currently selling at over 0.55c/lb. It is one of the lowest cost producers in the world and it is unhedged. The current mining operation is expected to last 10 years at a production rate of over 130kt of concentrate per annum. Management has shown however that by incremental discoveries the mine life will be significantly increased.

Kagara is run by capable people led by Kim Robinson who has close to a 15% stake in the company and has been a consistent on-market buyer. The same management at Kagara led the successful Forrestania Gold and is teamed up again for the KZL venture. Forrestania listed in 1987 at 25c and was taken over in 1994 for $3.35 by LionOre. In the process it paid a total of 70c in dividends. Here is a bit of history from the website:

In 1984, Aztec Mining Company Ltd ("Aztec") farmed into the tenements owned by Kagara, ultimately earning a 62% interest. Kagara's 30% interest in the tenements (which later increased to 38%) was transferred to Forrestania Gold NL ("Forrestania"), in exchange for shares. Forrestania was floated on the ASX in June 1987 at an issue price of $0.25 per share. During its history as a listed company Forrestania paid a total of $0.70 per Share in dividends.

In 1986, the Forrestania/Aztec joint venture discovered the Bounty ore body which has subsequently produced over one million ounces of gold.

Forrestania went on to develop another one million ounce gold resource at Mt McClure, and discovered the Maggie Hays and Emily Ann nickel sulphide deposits at Lake Johnston in Western Australia. Kagara maintained a substantial shareholding in Forrestania, whose founding directors included Kim Robinson and Max Cozijn.

In 1994, Mark Ashley joined the Forrestania group and became Finance Director. In 1997, Forrestania was acquired via a Part A takeover bid by LionOre Mining International Ltd ("LionOre"), a company listed on the Toronto Stock Exchange. Kagara accepted LionOre's combined cash and scrip offer of $3.35 per share for its Forrestania shares, and distributed the majority of the proceeds to its shareholders.

The upside is this:

Drilling is continuing to be encouraging at Red Dome and Mungana where the company aims to jointly develop a 150koz to 200koz per annum gold operation with a base metals circuit similar to the one that they already have at Mt Garnet. A prefeasibility study due is for April 2005. This second operation will double the companies earning and cash generating capacity.

It is expected that KZL will earn 14cps this financial year. If we take a reasonable PE of 10, the share price should be closer to $1.40.

I hold.

jebigabre
25-01-2005, 12:52 PM
KZL has just raised $15M in an effort to delineate sufficient ore tonnage to establish a 2mtpa gold-copper operation in the Chillagoe
region. Should KZL be able to do this, Macquarie Equities Research believes that indicative value of the project would be $140–180m (73–93cps).

In addition, independent of the Mungana gold-copper deposits, a smaller operation in the Chillagoe region is increasingly appearing viable through the development of the Walsh River zinc deposits (King Vol, Montevideo, etc) and the Mungana zinc-copper resource. Indicative value of that project is assumed to be around $50m (26cps) by MER.

Reading the latest quarterly result, KZL investment case looks convincing. Low cost operation & very high grades. They are mining zinc at US$25c per pound and average realised price was US48c per pound, giving operating margins most zinc producers in the world can only dream of ($23c). The aim is to reduce costs even further to US20c per pound.

Nice to see the price moving in the right direction as well with the exploration potential there to more than double the company's size.

k1w1
25-01-2005, 01:05 PM
We have a thread on this don't we ?

Dr_Who
19-06-2009, 07:21 PM
I think it is time to revisit this interesting stock.

The Chinese recently paid 80 cents and will take up their rights at 60 cents. Looks like a company with huge potential, esp with their current up coming new mines Mungana and Lounge Lizard.

I ve recently bought shares in this little Co. :)

Huang Chung
19-06-2009, 07:29 PM
You might have bought mine Doc ;).

I picked up stock at 90c and 92c after they recommenced trading, but sold when they started to slide (exiting at 83c). Now down to 70c I see.

Dr_Who
19-06-2009, 07:39 PM
You might have bought mine Doc ;).

I picked up stock at 90c and 92c after they recommenced trading, but sold when they started to slide (exiting at 83c). Now down to 70c I see.


LOL...

Na mate, I got some stock in the institutional book build 60 cents and bought more today at 70 cents. :)

Dr_Who
23-07-2009, 02:48 PM
KZL has gone mental putting on 40% in only a week trading 91 cents.

Hoop
23-07-2009, 04:11 PM
KZL has gone mental putting on 40% in only a week trading 91 cents.

Selling pressure when the capital raising was in progress + the short term softening of the spot prices at that same time methinks... Geez...damn nearly sold down to buy up my 1:1 entitlement at 60c as well.... lucky I didn't


Doc its gone even more mental in the last hour... up to 95c now!!!!!!:eek:

Edit 5.17pm NZ................95c nah..now 96.5c

Dr_Who
25-07-2009, 05:49 PM
KZL is now trading above valuation.

But then this market is illogical.

Hoop
03-08-2009, 02:08 PM
KZL has gone mental putting on 40% in only a week trading 91 cents.


KZL is now trading above valuation.
But then this market is illogical.



10 days later ...now at 116.5c (up 8c today)

Earth calling Kagara!! :eek:.......

http://i458.photobucket.com/albums/qq306/Hoop_1/Rocket-04-june.gif

Dr_Who
03-08-2009, 02:50 PM
This stock defies valuation fuindamentals. Wild swings with big ups and big downs. Oh well, good for those with a holding. :)

soulman
03-08-2009, 07:12 PM
Just saw this KZL was an Insider Trader Stock Tip of the Week.

Every time they have one, the head shares would jumps 20 to 30 percent, making the founder of the website Mr Neilson a rich man. He would have bought some prior to the tips being sent to subscriber. Then subscriber flog like leemings and buy in drove.

KZL has doubled since their capital raising a month ago.

shasta
12-05-2010, 03:57 PM
Just saw this KZL was an Insider Trader Stock Tip of the Week.

Every time they have one, the head shares would jumps 20 to 30 percent, making the founder of the website Mr Neilson a rich man. He would have bought some prior to the tips being sent to subscriber. Then subscriber flog like leemings and buy in drove.

KZL has doubled since their capital raising a month ago.

KZL - Presentation

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=490996

Whilst i'm out of the market i've been compiling a list of around 10 companies which i deem "undervalued" fundamentally, as mid to longer term investments, KZL made the list due to its diversified projects across a few metals, plus its future potential.

Time will tell if divesting there gold projects (Mungana Goldmines) was the right thing to do, but getting significant cash & holding a 49% stake still provides shareholders with a slice of the action.

Admiral Bay Project (zinc, lead, silver, barite) is the ace in the pack, to provide some real action when in production

Dr_Who
12-05-2010, 04:03 PM
Thanks Shasta. KZL is back on my watchlist again. Gonna do some reading on it tonight, if I havnt had too many glasses of wine... lol

shasta
12-05-2010, 04:41 PM
Thanks Shasta. KZL is back on my watchlist again. Gonna do some reading on it tonight, if I havnt had too many glasses of wine... lol

You know the ads, all in moderation - it's how we are drinking & all that!

shasta
17-05-2010, 11:37 AM
KZL - Chinese Govt approves $23.8m Cornerstone Investment in Mungana Goldmines IPO

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=491324

KZL is retaining a 49% stake in Mungana Goldmines post IPO

shasta
27-05-2010, 02:18 PM
KZL - Chinese Govt approves $23.8m Cornerstone Investment in Mungana Goldmines IPO

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=491324

KZL is retaining a 49% stake in Mungana Goldmines post IPO

KZL - Minimum $A53m raised for Mungana Goldmines IPO

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=492556

$A36m to be spent on exploration & feasibility studies over the next 18 months...

shasta
04-06-2010, 06:11 PM
KZL - Minimum $A53m raised for Mungana Goldmines IPO

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=492556

$A36m to be spent on exploration & feasibility studies over the next 18 months...

KZL - New Mine to increase Zinc production FY11 & FY12

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=493462

KZL has had a few broker reports of late all with valuations over $1

Share price hasn't really caught on to this yet, so KZL continues to follow the zinc/lead prices

Hoop
04-06-2010, 08:02 PM
Hard to fathom Shasta...an announcement that Kagara going to increase it Zinc production by 20% in this 2010/2011 year and someone(s) shook it out by -6.3% at the close today...go figure:confused:

shasta
04-06-2010, 09:37 PM
Hard to fathom Shasta...an announcement that Kagara going to increase it Zinc production by 20% in this 2010/2011 year and someone(s) shook it out by -6.3% at the close today...go figure:confused:

Especially hard to take when you consider many of the bigger zinc mines are nearing the end of there mine life (& zinc has been tipped to replace lithium batteries down the road), so demand will be in deficit in just a few years...

But if the US payroll job figures are good (say + 500,000 new jobs) we could see another 2% + rally overnight/Monday on the ASX

Hoop
05-06-2010, 12:15 AM
Especially hard to take when you consider many of the bigger zinc mines are nearing the end of there mine life (& zinc has been tipped to replace lithium batteries down the road), so demand will be in deficit in just a few years...

But if the US payroll job figures are good (say + 500,000 new jobs) we could see another 2% + rally overnight/Monday on the ASX

No chance Shasta ...as I write Europe just took a dive... down about 2% US market futures at preopening down 2% as well.

That US payroll figures are per quote .."U.S. economy adds 431,000 jobs in May — but all but 20,000 of those hired are Census workers."
The markets did not like that...

also.. In Europe it was the PIGS that rattled the market then it was PIIGS now it is PHIIGS Hungary is in the poop now.
Metal market down around -5% again.. no surprise

shasta
05-06-2010, 12:22 AM
No chance Shasta ...as I write Europe just took a dive... down about 2% US market futures at preopening down 2% as well.

That US payroll figures are per quote .."U.S. economy adds 431,000 jobs in May — but all but 20,000 of those hired are Census workers."
The markets did not like that...

also.. In Europe it was the PIGS that rattled the market then it was PIIGS now it is PHIIGS Hungary is in the poop now.
Metal market down around -5% again.. no surprise

When i heard a US "expert" tip up to + 700,000 jobs i knew the market would be harsh on anything below expectation

KZL headed under 50c?

I thought Spain was getting out of the mire, GFC part 2?

Dr_Who
05-06-2010, 10:15 AM
Hard to fathom Shasta...an announcement that Kagara going to increase it Zinc production by 20% in this 2010/2011 year and someone(s) shook it out by -6.3% at the close today...go figure:confused:

KZL is looking under valued at these levels, but for now the market is very nervous about the situation in the EU and the slow down of China. This reminds me abit like the financial crisis where fundamentals goes out the window and everyone is looking to bail out. I keeping a very close eye on this one.

Shasta, whats KZL debt level?

shasta
05-06-2010, 02:08 PM
KZL is looking under valued at these levels, but for now the market is very nervous about the situation in the EU and the slow down of China. This reminds me abit like the financial crisis where fundamentals goes out the window and everyone is looking to bail out. I keeping a very close eye on this one.

Shasta, whats KZL debt level?

At last quarter they had $A21.6m cash (+ receivables of $A14.9m)

No corporate debt as such, but they refinanced there banking facilities from NAB to ANZ, which includes a $A12m leasing facility, a guarantee facility of $A27m, & $A22m of performance bonds, with the $A12m leasing facility fully drawn.

Huang Chung
05-06-2010, 04:59 PM
No chance Shasta ...as I write Europe just took a dive... down about 2% US market futures at preopening down 2% as well.

That US payroll figures are per quote .."U.S. economy adds 431,000 jobs in May — but all but 20,000 of those hired are Census workers."
The markets did not like that...

also.. In Europe it was the PIGS that rattled the market then it was PIIGS now it is PHIIGS Hungary is in the poop now.
Metal market down around -5% again.. no surprise

As one wag on CBNC called them....the 'Hungary PIIGS'

shasta
15-06-2010, 10:45 AM
As one wag on CBNC called them....the 'Hungary PIIGS'

KZL - SSH Notice re Mungana Goldmines (ASX:MUX)

http://www.stocknessmonster.com/news-item?S=MUX&E=ASX&N=494160

KZL was to hold 49% of MUX, it seems they still have 62.1%

Not sure if the balance is being held up by the overseas investment office?

shasta
14-07-2010, 04:28 PM
KZL - SSH Notice re Mungana Goldmines (ASX:MUX)

http://www.stocknessmonster.com/news-item?S=MUX&E=ASX&N=494160

KZL was to hold 49% of MUX, it seems they still have 62.1%

Not sure if the balance is being held up by the overseas investment office?

KZL - Positive Pre Feasibilty Studies fro Admiral Bay (Lead-Zinc-Silver Project)

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=497536

This project is by far KZL's biggest in terms of upside, & would seriously re-rate KZL once capex funding was secured

shasta
26-07-2010, 05:29 PM
KZL - Positive Pre Feasibilty Studies fro Admiral Bay (Lead-Zinc-Silver Project)

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=497536

This project is by far KZL's biggest in terms of upside, & would seriously re-rate KZL once capex funding was secured

KZL - Quarterly Acitivites Report

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=498722

Production for the full year slightly down on forecast

Copper 20,214t (forecast 21,000t) Zinc 43,970t (forecast 45,000t)

Cash operating margins were Copper $US1.51/lb, & Zinc $US0.25/lb

FY11 Forecast Production - Copper 22,000T, Zinc 50,000T Lead 5,000T

Admiral Bay BFS are estimated to cost $A184.5m, & while i like the project the IRR @ 12.5%, doesn't allow much leeway in the metal prices

With Zinc anticipated to be in supply deficit (up to 5%) by 2014, a likely increase in the Zinc price makes this project more viable

shasta
03-08-2010, 05:27 PM
KZL - Quarterly Acitivites Report

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=498722

Production for the full year slightly down on forecast

Copper 20,214t (forecast 21,000t) Zinc 43,970t (forecast 45,000t)

Cash operating margins were Copper $US1.51/lb, & Zinc $US0.25/lb

FY11 Forecast Production - Copper 22,000T, Zinc 50,000T Lead 5,000T

Admiral Bay BFS are estimated to cost $A184.5m, & while i like the project the IRR @ 12.5%, doesn't allow much leeway in the metal prices

With Zinc anticipated to be in supply deficit (up to 5%) by 2014, a likely increase in the Zinc price makes this project more viable

KZL - Presentation to the Diggers & Dealers Conference

http://www.stocknessmonster.com/news-item?S=KZL&E=ASX&N=500427

KZl still leveraged to the price of zinc, with 45kt (FY10) 50kt (FY11) 70kt (FY12)

Plus 20kt + Copper & 5kt Lead

Had a bit of a run up from around 50c to high 60's - but still looks cheap with copper prices still > $US3/lb & the outlook for Zinc

upside_umop
13-10-2010, 07:21 PM
bit of action for KZL today? i don't know much about it other than what asb says:
-price of zinc is up, kzl is the same
-expanding resource..

http://farm5.static.flickr.com/4030/5077216121_2fb6004d05_b.jpg

price up, ascending triangle and volume?

shasta
13-10-2010, 07:44 PM
bit of action for KZL today? i don't know much about it other than what asb says:
-price of zinc is up, kzl is the same
-expanding resource..

http://farm5.static.flickr.com/4030/5077216121_2fb6004d05_b.jpg

price up, ascending triangle and volume?

KZL is targetting CSE as a takeover

http://www.stocknessmonster.com/news-item?S=CSE&E=ASX&N=343519

Offering 11c valuing CSE @ $14.3m

CSE closed up 3c to 12.5c (+31.6%)

Hoop
13-10-2010, 11:08 PM
Shasta ..the day was rather unusual as the announcement was at 1.04pm and a delayed reaction occurred...it was 2 hours later before the volume and price took off upwards...was there some other rumour floating around later today?

percy
10-05-2011, 12:23 PM
Advice please.Hold,Buy,or sell.?

drillfix
10-05-2011, 03:25 PM
Percy, Technically, the Hourly MACD histogram on the positive side is starting to decrease, which will gradually turn negative.

I think if a move upward was going to happen, yet lets not dismiss the daily chart which shows the Daily negative MACD histogram decreasing and getting ready for what appears to be a cross of the signal lines.


As W%R starting to move upward, DMI closing into the centre line (nearly) and hopefully will cross RSI at or just above 40 and now OBV moving in an upward direction.


At this precise moment in time, my call would be HOLD.

Trail a stop though.

Meaning, I would not be holding this stock lower than 52c because it would of course be falling downwards.

Just some consolidation on the 60min chart at present.

And if the stock fails to break past and hold above 58c over the next few days then I would also exit, but that's just me and IMO.

Good luck with that whatever you choose to do.

percy
10-05-2011, 03:48 PM
drillfix.Thank you for the time you have taken in your help.A friend of mine died a year ago.I am a trustee on his family trust.With his lawyer and broker's office being put out of action,sorting his trust out has been delayed.His broker has retired and the new broker has wanted to update the share portfolio.KZL is in the broker's sell recommendations.I had never heard of KZL so I thought I would ask.I am concerned the broker is churning the portfolio.sell Macquarry bank to buy commonwealth bank.sell KZL to buy BHP etc.The portfolio has been very good,so I am hesitant to follow new broker's advice.All jolly model portfolios,consevative ,growth,balanced,dead boring.what they have not looked at is how succesful my friends shares have been.Nice charts,pies,%,property,international,fixed income. Sounds and looks good,but just like management by committee to me.

drillfix
10-05-2011, 04:41 PM
Well percy, I guess they must be only trying to reduce risk so by aiming at blue chips they are protecting themselves to part of the function they provide.

If you look back the last 2 months or so though, you will see a low of around 52c and a recent high of 67c and right now as it stands it trading just up from that low, so if it were me I would exit around 66c and then if need be buy back in at 70c to make sure I ere on the right side of the trade, but looking at the daily chart now it looks like double bottom forming a W shape from the past couple of months.

Anyway, good luck with that all the same and good on you for looking after those interests.

percy
10-05-2011, 04:51 PM
Well percy, I guess they must be only trying to reduce risk so by aiming at blue chips they are protecting themselves to part of the function they provide.

If you look back the last 2 months or so though, you will see a low of around 52c and a recent high of 67c and right now as it stands it trading just up from that low, so if it were me I would exit around 66c and then if need be buy back in at 70c to make sure I ere on the right side of the trade, but looking at the daily chart now it looks like double bottom forming a W shape from the past couple of months.

Anyway, good luck with that all the same and good on you for looking after those interests.

thanks again.I find it hard,my own mistakes I wear,but do not like to lose other people's money.

shasta
13-07-2011, 05:32 PM
KZL - Quarterly Activites Report

http://stocknessmonster.com/news-item?S=KZL&E=ASX&N=548738

KZL covers all the Base Metals (+ exposure to Gold/Copper via there investment in MUX), so it will form a part of the long term portfolio

In addition to there Zinc, nice to see them delving into Copper & Nickel, especially with a decent gross profit margin on Copper, as well as the Zinc costs reducing

The acquition of the Copper project from ASX: CSE for $16m + cancellation of there 17.5% shareholding, looks interesting as are the Lounge Lizard Nickel grades

 27.2m @ 7.3% Ni returned from underground drilling at Lounge Lizard.

KZL has also appointed a advisor for the Admiral Bay Zinc project, this project is very promising & provides plenty of growth/upside

Cash @ 30/6/11 = $A25.3m, Debt was $A19m, & Receivables were $24.3m, overall net position = $A30.6m

KZL's 62% holding in MUX @ todays close $0.695 = ~$67m

shasta
18-08-2011, 06:47 PM
KZL - STRATEGIC REVIEW UPDATE – INDEPENDENT REVIEW OF NICKEL POTENTIAL OF THE FORRESTANIA PROJECT, WA

http://stocknessmonster.com/news-item?S=KZL&E=ASX&N=553622

Looks a decent project as KZL expands into Nickel, & other metals on top of there Zinc/Lead projects

shasta
11-10-2011, 04:41 PM
KZL - Sept Quarterly

http://stocknessmonster.com/news-item?S=KZL&E=ASX&N=560700

KZL has exposure to a good mix of base & precious metals, already has Zinc/Lead, Copper & Nickel production, as well as 61.9% of MUX that was spun out of KZL.

MUX has JORC resources of 2.5m/oz Gold, 32m/oz Silver & 225kt Copper with a forecast 120k/oz Gold, 1.5m/oz Silver & 20,000T Copper production in a couple of years.

KZL is looking to sell its Nickel assets & based on the location & size, the natural fit would be WSA (thats my speculation only!).

KZL has a decent pipeline of projects to expand production especially into copper, & to increase there zinc production.

There 2nd largest shareholder has recently increased it's shareholding.

Not too many diversified mid cap producers left on the ASX, others i like are IGO & IVA

percy
11-10-2011, 05:13 PM
KZL - Sept Quarterly

http://stocknessmonster.com/news-item?S=KZL&E=ASX&N=560700

KZL has exposure to a good mix of base & precious metals, already has Zinc/Lead, Copper & Nickel production, as well as 61.9% of MUX that was spun out of KZL.

MUX has JORC resources of 2.5m/oz Gold, 32m/oz Silver & 225kt Copper with a forecast 120k/oz Gold, 1.5m/oz Silver & 20,000T Copper production in a couple of years.

KZL is looking to sell its Nickel assets & based on the location & size, the natural fit would be WSA (thats my speculation only!).

KZL has a decent pipeline of projects to expand production especially into copper, & to increase there zinc production.

There 2nd largest shareholder has recently increased it's shareholding.

Not too many diversified mid cap producers left on the ASX, others i like are IGO & IVA


shasta,
thanks for the update.

shasta
13-10-2011, 08:44 PM
shasta,
thanks for the update.

Reposting the WSA/KZL ann

http://stocknessmonster.com/news-item?S=WSA&E=ASX&N=561095

SALE OF KAGARA NICKEL ASSETS

http://stocknessmonster.com/news-item?S=KZL&E=ASX&N=561168


I see these transactions as being beneficial to both KZL & WSA, Nickel isnt KZL's bread & butter & WSA is best placed to extract value from those assets.

steve fleming
05-05-2012, 11:00 AM
KZL - Sept Quarterly

http://stocknessmonster.com/news-item?S=KZL&E=ASX&N=560700

KZL has exposure to a good mix of base & precious metals, already has Zinc/Lead, Copper & Nickel production, as well as 61.9% of MUX that was spun out of KZL.

MUX has JORC resources of 2.5m/oz Gold, 32m/oz Silver & 225kt Copper with a forecast 120k/oz Gold, 1.5m/oz Silver & 20,000T Copper production in a couple of years.

KZL is looking to sell its Nickel assets & based on the location & size, the natural fit would be WSA (thats my speculation only!).

KZL has a decent pipeline of projects to expand production especially into copper, & to increase there zinc production.

There 2nd largest shareholder has recently increased it's shareholding.

Not too many diversified mid cap producers left on the ASX, others i like are IGO & IVA

So much for a "mining boom" in Australia, when a leading mid cap producer cannot even survive.

Shame to see KZL go into administration.

If there is a "mining boom" then it is pretty much restricted to iron ore and coal only...very tough going for precious /BM players.

drillfix
05-05-2012, 11:03 PM
I can agree with what you say Stevo, very much so.

Am now sitting cash out on the sidelines as I feel things will worst and the downside which really has not even begun, will eventually present itself, and when it does, it will happen fast IMO.

But then each to their own~!

soulman
05-05-2012, 11:23 PM
A few others that will join KZL will probably be BSM and NAV. AXM will probably survive due to Twiggy's investment.

When KZL offloaded Lounge Lizard to WSA, I had a feeling they were going to collapse. Just selling their prized asset to pay down debt isn't really a riveting news.

steve fleming
06-05-2012, 06:32 PM
I can agree with what you say Stevo, very much so.

Am now sitting cash out on the sidelines as I feel things will worst and the downside which really has not even begun, will eventually present itself, and when it does, it will happen fast IMO.

But then each to their own~!

Yes Drilly, looking pretty sick all round.

From the stocks i follow i have seen over the last few weeks: volumes falling; intra-day volatility increasing; bid ask spreads increasing; good news just being sold into and bad news getting smashed. It all suggests that spec/riskier money is moving out of the market.

Plus tax loss season coming up, to put further pressure on prices.

shasta
09-05-2012, 08:01 PM
So much for a "mining boom" in Australia, when a leading mid cap producer cannot even survive.

Shame to see KZL go into administration.

If there is a "mining boom" then it is pretty much restricted to iron ore and coal only...very tough going for precious /BM players.

Its a real shame to see KZL fall apart so quickly, but when reviewing there 5 years strategy there issue was always about adding scale to there operations to lower the costs.

With the WSA/Nickel asset sale & there MUX shareholding, i would've thought KZL could ride out a lean margin period, of particular disappointment is the fact Zinc is forecast to be in supply deficit in 2013, at the time KZL were due to increase Zinc/Lead production.

Am following PEM with interest, there costs are lower & they have a large supportive shareholder, but i uess all eyes on the Zinc/Lead price & there cash costs.