I have have been a long term holder of KZL, it is my personal opinion that they are in dire trouble, 12c means that the market knows this but we dont.
I was reasonably positive about them up until very recently, these latest revelations are a big concern to me.
They had their future growth pinned on Admiral bay, if they did sell it then it will be a big shame. Large deposits like that are hard to come by, not to mention the large sum of money that has already been spent on it.
I can smell a capital raising in the air, im just not sure if i would risk chipping in. With no cash they will find it hard to ramp up again.
its just a bloody shame, they were a great little company, till the good old GFC came along. If they had finished the Mungana processor and ramped up production before it hit they would have had a much lower cash cost and probably would have rode this out.
KZL Price at posting:
12.0¢ Sentiment: None Disclosure: Held
