G'day there folks. I haven't posted on this forum before but know KZL pretty well, having held them many times, and lost a heap of money along the way, I should add. I don't think I'll buy in again, though. I would say the main reason the SP can't take off again is the paltry amount of profit the company declared last financial year (wasn't it about half a million?), and the low prospect of doing very much better this year. Not good enough for a stock with a market cap of, what is it, about $500M? About 3 years ago in the metal boom times, with a SP of over $7, I seem to recall a profit of over $50M and a dividend paid to boot. Since then we've seen a huge dilution courtesy of new issues last year and really only blue sky promises such as Admiral Bay in a few years time. Even Lounge Lizard is not going to deliver a bumper harvest, though it should add to profits from this year.
When holding I was most often disappointed by the long delays in promised announcements, such as when a quarterly statement would say something like 'a new resource will be calculated by the end of March', then it finally appears in June. The best example was the long delay in the Admiral Bay pre-feasibilty statement. This sort of thing certainly doesn't help the SP one iota.
The other thing with KZL is that it seems like a favourite plaything of short term traders who can push it up or down 10% in a day when they feel like it. One minute the sellers outnumber the buyers 2:1 and later in the day it can reverse, and vice-versa, with no news announced to explain it. I'm sure they took me for a ride a few times!
Anyway, for anyone who bought in 3 or 4 years ago and held I hope it comes good for you eventually. I'm afraid it will probably require full scale production from Admiral Bay to achieve a major lift, though, and that is quite some way, and many dollars (new shares?) off.
KZL Price at posting:
77.5¢ Sentiment: None Disclosure: Not Held
