KZL 0.00% 12.0¢ kagara ltd

We're at the wrong end of the cost curve, but as long as we can...

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  1. 2,083 Posts.
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    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.







 
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