Goldman Sachs entered the fray with a negative analysis/outlook but I don't trust their motives - I suspect Goldman is buying
Bell Potter's analysis was the most thorough, accurate and knowledgeable
From Bell Potter's report..
We rate KZL a Buy with a Price Target of $0.56/sh. KZL provides leverage to copper and zinc, and has several growth options. It may take several good production quarters for the market to be confident of a sustainable turnaround. However, on a 12 month view we believe KZL is undervalued.
And then this...
Our base case valuation of $0.60/sh increasing to $0.64/sh in 12 months time ascribes value to the copper and zinc operations in the current configuration, Lounge Lizard, and the market value of MUX. Including Chillagoe Poly, our valuation is $0.86 rising to $0.93 in 12 months. However, we only include 25% of this asset to derive our price target.
Most of all, all analysts cite current valuations on the lack of forward looking data and eagerly anticipate a 5-year production outlook and strategy update on September 21, 2011. The update will be accompanied with an analyst site visit to KZL's key North Queensland operations on 20-21 September. The visit will include the Thalanga and Mt Garnet operations and will be followed by a corporate briefing.
KZL Price at posting:
59.5¢ Sentiment: Buy Disclosure: Held
