another article in the cairns post, page-8

In whichever case, 12c is already close to bankrupt price for KZL. the article indicates KZL just has $40-50m current debt.

If we just lookd at the balance sheet of half year report, after selling nickel asset, KZL should have net $40m cash on hand, namely all of current asset minus all current liabilities.

$172m-126m= $46m net cash.

Rare find a company with 20k tonne copper metal production /year is worth under $100m in this world, $100m is only for the mill construction cost.

So I never doubt the takeover bid for KZL's asset.

1, I am thinking GFTG should be one of the candidates, as it is the largest SH, it got priorities and can offset its established loss (70c--12c) by taking over KZL.

GFTG is not a mining company, just focus on trading, so it's possible that it will acquire all of KZL's asset (including MUX--it will own 80% after the transaction)

Then re-sell all of these assets to another Chinese Mining companies when market in better condition to get huge tax-free benefits by its BVI registered company.

2, OZL is another candidate, OZL's total copper mineral resource is 272.7Mt at 0.98% copper, producing 100k copper per year. KZL 43Mt at 0.9-1.0% copper, producing 20k tonne copper per year.

So by spending $150-200m to takeover KZL, OZL can increase copper resource to 315Mt, and more importantaly, it can increase it copper production 20% to 120-130Kt by little investment for them.

You know OZL just awarded LEI a six-year mining contract worth $1 billion to develop its copper project.

Clearly there will be other chinese mining companies thirsty on Copper projects as well, but I donot know what tricks GFTG is playing now.

If KZL is only for sale $100-150m, I am confident even myself can get a geniue buyer for them. (This is my job, I am working for a mining rights exchange company atm)

Dollar alread started the berish trend, if you serch some research reports, AUD is overvalued by 45%. I believe AUD will be below parity very soon and in 85c-92c range untill the end of the 2012. This is not really positive for KZL but the berish AUD can attract more chinese buyers.

History always repeat and sometimes interesting, PBG slashed to 17c in 2008 due to low AUD, KZL crashed to 12c due to high AUD, anyway AUD will never become a major issue on long term basis.