| impressive suite of tenementsrecent operational improvements and cost reductionsexperienced management and skilled staff70% conversion from resource to reserve status across all Far North Queensland projectscontrol over 2300 km2 in FNQability to dispose of Lounge Lizard & Mungana for circa 160mclear strategy going forwardimproved investor communication | high cost producershort-dated assetsevery 1-cent appreciation in the AUD adds A$4m to operating costsKZL must truck ore from its short mine-life regional operations, which is a major contributor to operating costsstockpile managementcredibility in the marketover the next three years, KZL will need a cash injection of $100mexpensive feasibility study for Admiral Bay, which includes a 1,400m deep shaft that will cost nearly $200m |
| North Queensland exploration programspending A$50m over the next two years on drillinghigh level of interest in Admiral Bay2-year, 5-year and conceptual plan to increase the Thalanga mill life to 7, 12.5 and 20.5 years2-year, 5-year and conceptual plan to increase the Mt Garnet mill life to 14.5, 24.5 and 29.5 years2 year, 5 year and conceptual plan to increase the Northern Region mill life to 11.5, 17.5 and 27.5 yearsdeveloped a concept to utilise recent developments in optical spectral or X-ray ore sorting to upgrade ROM ore and decrease trucking costsintends to achieve a 30% reduction in site controllable cash costs over the next 5-yearsstrong zinc market outlook 2013-2015tight global copper mine supply | 5-year strategic plan relies heavily on a significant increase in proven resources-reservesmay burn cash for the next few years before production increases and costs fallpossible slowdown in Chinaglobal economic outlook |
