We're at the wrong end of the cost curve, but as long as we can last for a couple of years then the zinc market should firm up. Now the Zinc price is US$0.7966/lb while management are projecting costs of $0.72-0.75/lb for the year (unsure if that's USD or AUD).
At least the copper margin is looking safe...projected costs of $1.55-1.61/lb with $3.16/lb spot price.
Net Current Assets is ~$50m, and hopefully they can keep producing profitably, enough to reach 2013.
I have attached 7 interesting slides about zinc fundamentals. Of particular interest are the first 3 slides that show car production in China roughly doubling every ~5 years... Also vehicle ownership per person in China is just 5% and increasing steeply, compared to 80% in the US.
KZL Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
