when we come back, page-14

Hi HT,

In short, we don't know what KZL will be left with until WA & South QLD are sold. The MUX deal (if it goes through) makes it a bit easier to speculate and the sale of central creates a window of time to maintain the admin. The demand for zinc assets is also growing daily as 250,000t pa comes offline next month and 50% of current zinc stock is on backorder.

Instead of selling their stake in MUX for cash (which MUX didn't really have) and getting 20-25 million, KZL takes full ownership of Red/Dome and the GRA valued at 50-120 million, depending on your gold outlook.

They could well end up returning to explorer status, if they sold all of the Northern region assets and kept all or some of the Red Cap/King Vol/Griffiths Hill tenements. King being the most advanced project. Alternatively, they could split the Mungana mine and tenement, sell all explorations tenements and share the plant (80% complete) with another miner, whilst focusing on gold and copper. I guess the reason this didn't work with MUX was that MUX didn't own the tenement or a part of the plant and went off exploring down in SA.

All depends on what they sell southern and AB for, but they spent a heap of cash developing West 45 in the southern region and a number higher than 50 clears debt and gives them options. They got 30-40 for central. I think they'll get 50 for central and AB at least. e.g. West 45 is 90% on the way to production.