How could you possibly expect strong results with their main product 'zinc' has touched or broken lows 3 times in the past 3 years and they have endured 2 credit crisis' and oversupply?
If KZL record 4 quarters of median zinc price sales their profitability changes dramatically.
If you believe those lows are over 'buy'. If not move on.
Here's a chart again in case you missed it.
Blaming management is a bit like taking a dig at airlines for not being profitable when oil prices soar, or the Alumina business when supply jumps 400% or when Australian exporters struggle against a high AUD.
You forget too that they recently bought Einasleigh for 25 million. So really it's a trade of a far away asset for a local one.
KZL Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
