KZL suits MIMs Ltd because of the diversity. Meanwhile OZL mainly concentrate on gold and copper and may not like to diversify anymore. However OZL has plenty of cash still. MimsLtd missed out of the main price OZL by courtesy of the Australian government which deemed a security risk to Australia because of the testing site in South Australia.However it is harder to say no on KZL.Both the companies have synergies because of their diversity and could be a good fit. Michael Michelmore has been given the license to look around by the principal company of Mims Ltd. Also China still need a lot of resources. The question is price, whether Mims Ltd can come up witha price that will enticed KZL to give up what they have? It is not easy to accumulate a portfolio of resource assets which KZL has build up.
KZL Price at posting:
64.0¢ Sentiment: ST Buy Disclosure: Held
