I am a bit disappointed. At first glance King did not meet my expectation but it's not exactly negative either. E.g. if you calc the indicated resource - the new amount is 144,000t of pure zinc vs the former at 145,600t, so there is a small downgrade of just 1600t but the numbers is better qualified and based on a higher grade. The inferred, which doesn't matter as much as it's not commercial is now 184,140t of pure zinc vs the prior -280,000t estimate, so 100,000t was lost there.
I am also surprised that there was no movement of inferred to indicated status at either Morrison, Redcap or Queenslander lodes but I have to look at it again. I thought this JORC resource was done but they are still stating it as inferred. Inferred doesn't mean much to me. You can't borrow from the banks against it for example or base much value on it if you sell the business.
There are some other positives such as exceeding exploration targets already etc and a few new finds but I was expecting a bit more from King. They do explain that they didn't finish drilling at Deeps, which was were they had some high grades, so we may see more of the inferred upgraded to indicated at a later date. That is what I was really wanting to see.
I take another look later and examine it closer but that's my first impression. I'd be interested to hear other thoughts. - also about the timing?
KZL Price at posting:
35.0¢ Sentiment: Hold Disclosure: Held
