If AUD was going down then so would commodity prices as well as interest rates over here. The rise in AUD has been offset by the rise in commodity prices. AUD will not depreciate until the FED decide to increase rates in the US; these signals will come from a rise in employment and CPI/PPI. The more quant easing I.e buying US govt bonds to stimulate and increase the money supply in the US economy to encourage lending and growth.
Look out for China's 5 yr growth plan with hopefully more investment to continue in the west and inland. This will continue growth in GDP here and in Asia.
Copper is the no 1 commodity to outperform in 2011 as is aluminum, lead and zinc. I'd also put palladium in that category. More zinc mines are approsching their EOL. This company has positioned themselves to reap the benefits over the last 12m. IPO Mungana, expansion of Thalanga, PFS of Admiral and the Copper Strike bid. Just some of the calculated and strategic decisions made by a well organized company looking to increase share holder wealth and be ahead of the competition.
EPc and NPAt should be growth %yr will be back to 06-07 levels in 2011 SP has every chance of trading in 1.50-2 bracket if the momentum continues and there are no black swan events.
KZL Price at posting:
79.0¢ Sentiment: None Disclosure: Not Held
