reduced costs and significant prod. increases, page-2

I get the feeling KZL's fortunes are more hostage to external factors in the broader market than the imporved fundamentals announced today.

Just as the Dow failed to rally despite stronger numbers last night, so too are base metals inextricably linked to perceptions of global growth.

With approximately 75% of Chinese growth fuelled by internal demand and the Chinese government determined to stave off the social unrest that a severe economic contraction would trigger, I think the sell-off in metals producers somewhat overdone. Still, sentiment rules at the moment and sentiment by definition is seldom rational.

A "relief rally" on the Dow tonight would do wonders for those perceptions - at least in the short term. Longer term, Western governments need to get their houses in order for a sustained return to growth for the metals producers like KZL.

DYOR

Gupper