I have to agree with Gself on this one.KZL was in a death spiral...

I have to agree with Gself on this one.

KZL was in a death spiral of high C1 cash costs and continued exploration to keep increasing the reserves or t/o to do the same. This led to a small EBITDA, but not EBIT. That model can continue for a short while, but not year in year out, Eventually assets need to be replaced and their is no cash.

If KZL rises, it will be left with small, high cost mines that will burn cash and will cause pain and stress to shareholders.

Mining in Aust is now so expensive, you need the volume to keep the costs down. Anything less than 25kta of copper annually is very marginal business.

HT1