Wilson recently sold all of their holding of KZL in the priority growth fund. They downgraded KZL to HOLD for the "risky investor" on 13/04/2012 with a target price of 82 cents/share.
Their rationale for the target price is based on the tightening copper market and the significant zinc resources KZL holds.
WHTM points out that the stock market has been valuing KZL as though their polymetallic operations would not reopen, and appears to have been only considering the copper operations, which would value KZL at $0.22/share.
They also play around with the idea that there is potential, if new financing facilities cannot be agreed in the very short term that either a sale or a capital raising of the order of $20m could be required before the end of December 2012. At current SP, that's 16.7 mill shares.
KZL Price at posting:
12.0¢ Sentiment: LT Buy Disclosure: Held
