Ann: Positive PFS for Admiral Bay Lead-Zinc-Silve, page-16

re: Ann: Positive PFS for Admiral Bay Lead-Zi... Right, before I am tarred and feathered, I own KZL shares and still rate them a buy....just not for Admiral Bay, and now this is confirmed in my opinion by the AB PFS results.

The NPV is not much more than the cost of the DFS, and is around 20% of the total CAPEX......together with a IRR od 12.5%, in todays world of restricted capital, this is not going anywhere soon in my humble opnion.

Now, dont get me wrong, IF the project wa to increase in throughput to 5 or 10 Mtpa as gself has indicated, the IRR would increase, possibly to a level suitable for a major to push the go button BUT well outside KZL's abilities.

The problem with this is that a DFS wil require the orebody to be drilled out to a suitabe level of JORC definition, BUt this will require the shaft to be sunk and lots of drilling.....even to prove up 10% is a big deal.

Hence, unless a major likes te looks of this (and I doubt it but could be wrong) I dont think this has legs as it stands, and needs a much higher grade 10 Mt starter underground to raise IRR to above 20%.

Based on this latest report, it is my opinion that AB does not have a material value in terms of share price for KZL at the moment.


Flying Fox on the other hand has lots of upside and I wll continue to hold and possibly add to holdings on weakness.

Just my opinion guys, but happy to hear reasoned arguement.

Process