5.5 eps is based on NPAT of 40 mill / Shares on issue 718,307,956. I cut out about 20 mill for tax and other expenses. That's what I think they can do. They have a bit of hedging in place and I think they would have held off on invoicing metal at the lows.
Average zinc spot for the past 6 mths looks to be about 93c. I guess they can make up for any shortfall by ramping up production slightly. Correct me if I'm wrong but I think they averaged 1.02 for FY11? So zinc will need to be 1.10 for the most part of 2012 or NPAT will probably be about 20 mill again. I think the shorts will get completely bored with the lack of movement down.
The clues and answers though will be in the quarterly activity report due January 11.
KZL Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
