Thanks for your comments, as for discussion, we always got different views, that's normal. I appreciate your outright and your perseverance on KZL thread.
OZL and Minmetal are two candidates we are thinking as potential competitors from Aus, and this is not only our company's view alone.
Simply, Minmetal is producing 500t Zinc metal per year in Queensland, KZL's zinc production can contribute to 10%increase to 550-560t Zinc.
OZL can increase 20% of its current copper production.
As a tech consultant, you may focus on the long term strategy concerns. As a trader/agency I am focusing on the short-term, Mid term return for potential buyers, especially other benefits like future funding rasing abilities in Aus market and so on....
Every Mining company would like to grab T1, T2 assets, not only OZL, but the facts are BHP and Rio tinto also hold plenty of T3, T4 assets. There are not many KZL scale mining companies in Aus, and there are only few companies in Aus who can produce 20kt copper metal per year.
T1, T2 assets are not everwhere as well, development costs, infrastructure, timing(normally 7 years), HR..... If OZL would like to ramp up production by 50% within 2 years, KZL is a good choice for them.
All in all, the real issue which makes sense is the cost for the acquirers, it doesnot mean large company will reject a bargain. KZL's total plant construction costs already exceed $100m, so $150-200m bid form the buyer is reasonable.
Anyway, just my personal view, whatever we discuss here has no use for KZL to change its situation. As a tech consultant, I believe we may have some cooperation opportunities in the future, like drilling equipments, machinery... keep in touch and good luck.
Cheers
KZL Price at posting:
12.0¢ Sentiment: None Disclosure: Held
