I am not as pessimistic as Boondog or a bullish as Berlin Business wrt to Kagara.
IMO, KZL has some significant headwinds to combat in 2012. The biggest of these is managing cash while executing the strategy as laid out. LL when sold, will strengthen their bal sheet and provide some buffer, but the key to KZL's survival will be to increase output while keeping enough cash for a rainy day. GFC I taught us that the base metal markets can fall like a stone, if conditions are bad enough. Having the cash buffer (or a strong bal sheet) will be important.
Other headwinds are their high C1 cash costs. The CEO has even acknowledged that it is a concern.
If BB is correct, and the Zinc market turns around, KZL will be in a sweet spot. If the forecast is incorrect, or delayed, KZL's sp will continue to flounder.
By the way BB, I agree that the US is beginning to fire and our market could rise, being pulled up by the US.
HT1
KZL Price at posting:
25.5¢ Sentiment: None Disclosure: Not Held
