A few comments on the Quarterly 1. A good result production wise, they seem to have managed the wet season well and meet production targets for the year.
2. I calculated cash flows to be 10.3M from the copper operations and 5.8M form the Zinc operations. So probably just above break even once exploration, development and corporate expenses are accounted for.
3. Approval received for Vomacka, so we should be back to three operation centres shortly.
4. on the exploration front, possible resource increases at Balcooma and Mungana.
5. Production about to commence from Lounge Lizard. Hopefully KZl can negotiate an increased production rate to say 100Kt/pa. However, I think this is unlikely in the near term as WSA are mining more than they are processing with Spotted Quoll coming on line. 50Ktpa should provide an annual cash flow of around 20 to 30M (4 to 5 cps).
6. Increased landholding around Forrestania through the purchase of 30 tenements from St Barbara. We may see further exploration programmes here.
7. KZL have commenced discussions with joint venture partners for Admiral Bay. Reading between the lines, GFTG are probably the most likely partners.
KZL Price at posting:
62.0¢ Sentiment: None Disclosure: Held
