Thanks for putting into words what I (and probably quite a few others) have been thinking, wongy. I follow about 40 companies on HC (some that I hold, some that I just watch for the future), and I have found BB to be one of the most knowledgeable and realistic contributors. He obviously takes the time and trouble to research the company, its operations, its management, and the commodities with which the company is involved.
Although I certainly don't possess the depth of knowledge about KZL which BB and probably a number of other contributors possess, since I first bought into the company about three years ago, I have been confident that it has a very promising range of projects which will in due course provide solid financial returns.
Despite the falling share price, my confidence in the company has increased, not decreased, and unless the world economy falls into deep recession or depression, I believe that we will start to see a succession of very positive quarterly reports from KZL starting no later than in the second half of 2012. Earnings from copper are likely to be substantially higher in 2012, and the future for nickel and zinc looks a little brighter, barring a major downturn.
The substantial holding in Mungana Goldmines should start to be factored positively into the SP as the commencement of production of gold and silver draws near, and we are likely to see some positive news from the extensive exploration programme on KZL's own tenements and the Monto JV.
Obviously a successful sale of Lounge Lizard would provide a very welcome cash injection to fund some of the exploration and development costs (including completion of the Mungana plant), and finding a cashed-up JV partner to fund the Admiral Bay project would also provide a substantial boost to the company and its SP.
As BB has pointed out, despite the gloom there are some positives in the European situation, particularly in Germany, and the fact that the European Central Bank has embarked upon a programme of back-door quantitative easing (by funding the banks at 1% interest, which should enable some of the banks to start buying up some of the government debt), we'll maybe start to see some external and internal confidence returning in the European Union.
Thanks BB for your very welcome contributions. I can assure you that they are much appreciated.
Cheers, Mike
KZL Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
