Just another event to batter the KZL share price really. Seems most miners are getting slammed but what does the event really mean?
Point 1 - Japan accounts for around 5 percent of global copper consumption.
Analysis - Reconstruction will require large amounts of copper, aluminium, steel, nickel and zinc.
Points 2 - Support for gold
Analysis - Tokyo will need to borrow more, which should help keep the yen high. That will depress the currency basket and underpin gold.
When we talk about natural disasters, we tend to see an initial sharp drop in production and share prices of corressponding industries. Then you tend to have a V shape rebound. But initially everyone underestimates the damage.
KZL Price at posting:
56.0¢ Sentiment: LT Buy Disclosure: Held
