Selling AB would not be a good outcome for KZL, but I currently cannot see where the cash will come from to do all they want to do in their strategy. KZL management need to plan for both the upside and downside in Zinc and copper prices. On way to do this planning for the downside will be to retire all debt and having a cash reserve on the bal sheet. Then, once the bal sheet is repaired, implementing the 5 year plan is considerably derisked.
Selling AB may provide the cash buffer needed so that KZL management can begin to execute their plan.
HT1
KZL Price at posting:
11.5¢ Sentiment: None Disclosure: Not Held
