re: Ann: Global Investment Roadshow PP New Yo...
It's worth noting, none of the assets that Kagara holds have changed since the article i have posted below, this is from the Age Feb 2008, KZL is still in the same position as far as its mining assets, when conditons return to a more normal state i cant see why the sentiment wont as well.
Kagara
KAGARA chairman Kim Robinson hits the hustings this week.
Ostensibly, the flying visit to the east coast by the Perth-based Robinson is to talk up the group's December half profit report.
Advertisement: Story continues below Not a bad idea, given the base metals producer is expected to weigh in on Wednesday with a net profit after tax of $35-38 million on revenue of some $150 million, despite pressure in the period on metal prices.
But the real message that Robinson wants to get out there is about the group's super-charged growth profile, making it a prime takeover target.
Already ranked as one of the mining market's best performed in the last five years, Kagara should produce some 30,000 tonnes of copper and 40,000 tonnes in zinc in the 2008 financial year.
More to the point is the group's planned growth in annual production to about 45,000 tonnes of copper and 100,000 tonnes of zinc from 2010.
In addition to that, Kagara's status as one of the more aggressive explorers has continued to pay dividends.
The big potential game-changer from that remains the Admiral Bay zinc/lead project in Western Australia. Watch out for an initial 50 million tonne resource to be confirmed there in the March quarter.
It is deep - and not the highest grade around - but its potential to become a new long-term supplier of 300,000 tonnes of zinc and 150,000 tonnes of lead on an annual basis gives it special appeal, particularly for those growth-hungry mining groups that remain convinced metal prices will hold at levels well above their long-run averages.
Anything Robinson has to say on Admiral Bay at a Sydney zinc conference ahead of Wednesday's profit presentation is set to be translated pronto back to the head offices of metal groups throughout north Asia.
The zinc conference will be the usual hot-bed of speculation about the rationalisation and consolidation of the junior and mid-tier base metals sector.
It has an added edge this year because of the sharp share price retreats in the last couple of months in response to falls in zinc and lead prices. Kagara is nicely positioned to benefit from the expected action and already has its foot on Glengarry (19.8%) and Metallica (18.2%). But the knock taken by Kagara's own share price - it is down from a 52-week high of $7.22 to Friday's close of $4.44 - means the talk will continue about its potential to be on the receiving end of some action. If it wasn't for Korea Zinc's 14% stake and Robinson's personal holding of 8.3%, there seems little doubt that Kagara, with a market cap on Friday of $955 million, would have already been snapped up.
KZL Price at posting:
59.5¢ Sentiment: Buy Disclosure: Held
