I agree BB, my strategy is to accumulate. KZL are well positioned to take advantage of the large mine closures and the surge in zinc price. we will never know exactly when it will happen so it is prudent to increase my position while there is blood in the streets.
when i was buying/accumulating KZL in 1999 and the early 2000s i was reading the same rhetoric from people about KZL and the general zinc market that i am reading now.
What moron would buy a zinc company , Zinc is in the doldrums, exactly my point i would say? They went on the achieve a high of around $7.80 i did quite a bit of selling at $6 and low $5 and mid $4 and have always held the rest. KZL were almost fatally wounded by the GFC. They got caught in a critical growth phase and were exposed to a large amount of debt, this was ok at the time as they were making buckets of cash which meant it was being easily funded and was also the right thing to do at the time. Enter the GFC and the collapse in metals prices and hey presto they could not afford to pay the interest and things went sour. Completely out of their control and and event that almost cost the lives of others like OZL etc even RIO was looking to be in a bit of trouble during the GFC
KZL Price at posting:
28.2¢ Sentiment: Buy Disclosure: Held
