BB, most of the cash is held in escrow for MUX, i.e. it is not KZLs. KZL is unfortunately being squeezed as they are a high cost producer that requires substantial CAPEX to sustain production let alone execute their expansion strategy. There are three ways out of this conundrum: Luck: Commodity prices improve, aussie dollar drops and margins and cash flow enable growth strategy to be executed. Lounge Lizard Sale: If a reasonable deal can be negotiated, the resulting cash would enable KZL to execute their strategy. Unfortunately not a good time to put the fore sale sign up. KZL is receiving 2 to 3M /month cash flow from LL so I doubt they will give it away. Good Production Results: If productions costs continue to trend down, KZL may be able to hold their head above water until commodity prices improve. Exploration successes would obviously help in the longer term. However, going by some comments in the last quarterly I think Kig Vol may disappoint, just like Munguna. I like the new MD and think he can turn around the company as long as they can get through the short term
KZL Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
