If KZL is raising money again through a placement do not expect anywhere close to 10c given how the stock has performed recently.
The lowest point was 10c so expect the placement is more towards 8cents.
The last institutional raising at 31c for $25m ... lets say that these institutions are not touching KZL again anytime soon.
If KZL were to engage in say a raising of $100m, getting enough subscription is going to be another issue ... who is going to invest in a mining company that is basically in a "mothball" stage awaiting re-start. But the good thing is that management are still getting their healthy salaries and bonuses. Of course the company is saying production standstill is due to "negotiations with ANZ and temporary".
If KZL can raise $100m at 8cents then they have done well. Problem will be 1.25billion shares on issue, which will need an EGM to be called. Overall KZL will be sitting on 2billion shares and a market cap of $160m (if placement is at 8cents).
Sure people can talk of the "asset" values but lets be honest ... $160m for a company that is not doing anything. Can KZL sell all their assets for $160m?
I remember the nickel assets were touted at $250+ at one stage (early on) only to then be sold for $68m. Now if take away the "fees" associated with the transaction then you ar probably left with $62-63m net.
KZL is good for a trade as there are going to be periods that it rebounds.
Fundamentally ... well I will let each "expert" to their own opinion.
KZL Price at posting:
11.0¢ Sentiment: None Disclosure: Not Held
