re:rosco~ lead/zinc shares
Personally think zinc shares are all over-valued to a greater or lesser extent.(The old LME expression-"Zinc stinks"). ZFX is a ticking timebomb of environmental liabilities mixed in with pressing capital requirements, and b*gger all exploration upside. CBH bought the Ellura mine, which has sus grade and a bloody large fault running across the decline-not the safest of working environs-and is deeeeeep. KZL is still in some sort of honeymoon phase. The deposits are comparatively small but they appear to be happily bouncing from one to another. They cannot afford a hiccup, and i personally like to see one of their deposits offer some decent minelife. Cash position still looks tight. PEM offers the old Broken Hill. The current senior management have a strong precious metals background which always worries me with underground base metals operations. They got a smack for attempting to hide their operating costs in the last quarterly -which were above budget. The appear to have cleared up their interest in Strike Oil and the recent return to gold activties appears to have been well judged. As a lead/zinc player,albeit not a pure one, it appears to be the better option. There are other stocks besides HER, such as Union Capital in Iran but frankly that is a waste of time. My comments on not being able to readily identify the capex for HER came from reading an abridged version of the presentation and was entirely my fault. My conclusions remain the same-who is stepping up to the plate to fund a zinc project, in Indonesia, with an orebody of difficult dimensions and less than stable ground conditions.(The grade is terrific for what it is worth). I suggest if it were all so easy the SP would be heading north, which it is not. Cheers, TAS
HER Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
