In the last Quarterly they stated they had made provisions...

In the last Quarterly they stated they had made provisions (through ore stockpiling and increased production from Mt Garnet) for transport links to be unavailable for 60 days. So apart from sales being delayed, production should be unaffected�K. nothing to worry about IMO (but it has effected them in the past)

Hopefully strong Q1 production results will underpin a recovery in SP.

As I alluded to yesterday, I think KZL has strong medium term growth opportunities to produce:
~150 Ktpa of Zinc. Achieved through
oNear Term Growth - finishing the base metal plant at Mungana and development of the King Vol deposit (3MT @14%ZN). As previously reported by KZL, this would take them to 100 Ktpa.
o Medium Term Growth - Development of Waterloo and Liontown deposits for treatment at Thalanga (in a recent presentation the Kim R indicated that this area would be aggressively explored in 2010)
o Continual operation of the Mt Garnet Facility, treating ore from Mt Garnet and the polymatalic ore around Balcooma
~ 30+ Ktpa of Copper through increased by-product production
~ 4 Ktpa of Ni through expanding Lounge Lizard to 100Tpa (KR also indicated this was on the cards�Kat a cost of 20M)

All of the above development options are either partially completed or relatively low capital cost. If KZL receive 25M cash from the gold spin of, they should have around 50M cash on hand to fund the above growth. If the above production profile is achieved, revenue would be in the order of $400 to 500M pa at todays prices.

There is also potential for additional upside from the gold spin off and Admiral Bay.