I do not own KZL, but follow it, along with other base metal stocks.
One potential reason for the sp not moving is that KZL has high C1 cash costs for copper (relative to OZL and PNA) and has had increasing C1 cash costs for Zinc over a number of quarters, which has resulted in Zinc returns per lb falling or staying stationary over that time (even though Zinc prices have risen a little).
Another potential reason is that A Bay pre feas report did not light up the market. It had an NPV that was "poor" relative to the size of the investment.
Another potential reason is that Copper is the base metal of 2011, and with Anglo american wanting to offload it's Zinc assets, Zinc is not currently "flavour of the month".
Missing deadlines is not a good look for a company. Whether right or wrong, a lot of investors judge the quality of management by "Did they do what they said they would do, in the time frame they said they would do it". Boards that repeatingly fail this test, tend to get marked down.
There could be all sorts of reasons to explain away the issues I have raised, and they could all be valid. But the old adage of "Perception is reality" could explain a lot for the sp not moving substantially over the past 10 months
HT1
KZL Price at posting:
80.0¢ Sentiment: None Disclosure: Not Held
