As I read the report, I was neither disappointed not overly excited about anything new. All the info was expected, 'known' and already 'out there'.
We knew commodity prices were down 30% over the quarter, and most of the results re: exploration grades were already published.
Nothing re: LL, but whilst Nickel prices are rebounding strongly, delays can only enhance KZLs position. This month alone the price has jumped almost a $1 per pound.
The most exciting thing of course is the fact that they are on target to update the North Queensland resource inventory in late January 2012.
Receivables are down from 35 mil worth to 20 mil worth, which shows they weren't dumping too much inventory at low prices. This probably contributed to created cash flow issues during Q2.
Real cash in the bank is A$10.8M, which will see them through the quarter provided commodity prices don't tank like last quarter. The real question is why didn't they raise a little more, 35-50? LL, must be close to be being finalised.
At the end of the day the share price finished flat, so all in all, a non event. If that's the worst of it out of the way, the future looks bright indeed. I need to have another read and listen to the audio, so I'll be back.
As for TAS, better luck next time! Maybe your sole pessimistic view will serve you better next quarter.
KZL Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
