Australian (ASX) Stock Market Forum

KZL - Kagara Limited

Re: KZL - Kagara Zinc

Hi SCSL, I raided the bikkie barrell yesterday to take a small position in this. (Would like the cash to take a large position!) The early sellers seemed to dry up quickly, and the rest of the day held firm considering the wobbly market. I just got the impression that the stock holders of KZL dont really want to sell. Of course there could be a mass exodous from here on in, but Imo, it looks solid long term. Cheers, Barney.
 
Re: KZL - Kagara Zinc

Zinc prices hit another record overnight on the LME.
 
Re: KZL - Kagara Zinc

Well - just out of curiosity...comparing the last year for ZFX & KZL:
- past year - ZFX up from ~$4.90 to ~ $15.85 today. Thats about 223% increase right?
- KZL up from ~$1.70 to ~ $7.20. Around 323% increase.:)
With ZFX pegging them back with some good gains in the last few days, while KZL has consolidated - as you would expect - after such a magical run in Oct.

Either way it's all good for KZL - as it will be looking even more attractive to investors as ZFX continues its run, and starts to look relatively expensive.

I'm sure theres plenty yet to come for both of them though, with Zn prices looking good for a while yet. ;)
 
Re: KZL - Kagara Zinc

I've opened some CFD positions on KZL yesterday & today, after a pull back the support is looking good, with the market and the materials sector looking to have a strong finnish I'm leaving them open over the weekend (something I hav'nt done for a while). porkpie
 
Re: KZL - Kagara Zinc

Wouldn't you think you would start to see some big moves by KZL and ZFX to cement thier positions in the industry by taking over some smaller zinc miners?
 
Re: KZL - Kagara Zinc

CanOz said:
Wouldn't you think you would start to see some big moves by KZL and ZFX to cement thier positions in the industry by taking over some smaller zinc miners?

hmm..ZFX gobbles up KZL, CBH eats TRO and PEM mergers with TZN, as for JML, CSM will most likely aquire it ...
so after some massive consolidation :D this is wat's left

ZFX, CBH, PEM :D :D

ok now seriously,
KZL is unlikely to be a target, i think if there was a consolidation it would be ZFX having a go at CBH, while KZL and PEM could merge
 
Re: KZL - Kagara Zinc

CanOz said:
Wouldn't you think you would start to see some big moves by KZL and ZFX to cement thier positions in the industry by taking over some smaller zinc miners?


KZL dont have enough cash to take someone over. They will grow their production enough without having to take over another company.

ZFX, on the other hand, are in the opposite position. They have plenty of cash, and will not be growing production significantly in the near future, so it makes sense for them to buy another producer.

This is just speculation, but i think CBH is prime for a takeover. What would be a good price? Normally i think its about 30% premium on average. $1/share sounds good :D
 
Re: KZL - Kagara Zinc

nizar said:
KZL dont have enough cash to take someone over. They will grow their production enough without having to take over another company.

ZFX, on the other hand, are in the opposite position. They have plenty of cash, and will not be growing production significantly in the near future, so it makes sense for them to buy another producer.

This is just speculation, but i think CBH is prime for a takeover. What would be a good price? Normally i think its about 30% premium on average. $1/share sounds good :D

no way..i want 2.50 at least :D
 
Re: KZL - Kagara Zinc

Kagara Zinc Says It Has Been `Informally Approached' (Update3)

By Madelene Pearson

Nov. 10 (Bloomberg) -- Kagara Zinc Ltd., the best performer in Australia's benchmark stock index this year, said it has been ``informally approached'' by a number of interested parties, stoking speculation that the company could be a takeover target.

None of the approaches has been attractive to the board, the Perth-based miner said in a statement today. Kagara is worth A$1.5 billion ($1.15 billion) at today's stock price.

Mining companies are scouring the world for assets to expand output as prices of commodities soar. The price of zinc, which is mainly used to galvanize steel, rose to a record yesterday for a fourth straight day.

``The company has got a proven track record of developing their projects,'' said Albert Landman, a strategist at Tricom Futures Services Pty., who helps advise on A$80 million in Australian equities. ``It's probably fair to say that the investment community, as a whole, has been behind the curve in the strength and upside in base-metal prices.''

Shares of Kagara rose 27 cents, or 3.6 percent, to A$7.72 on Australian Stock Exchange at the 4:10 p.m. close of trade in Sydney. The stock has more than tripled this year.

``We are not currently in discussions with any interested parties,'' Kagara's Executive Chairman Kim Robinson said in the statement, which was lodged with exchange. Robinson didn't specify what the approaches had been about.

The company sells all of its output to Korea Zinc Co., the world's biggest smelter of the metal, which also holds a 14 percent stake in Kagara.

Zinc Surges

Zinc prices have gained as supplies of the metal have failed to keep pace with surging demand. The metal will average $1.95 a pound, or $4,299 a metric ton next year, up from a previous forecast of $1.30 a pound, Goldman Sachs Group Inc. analysts led by Oscar Cabrera said in a report yesterday.

Zinc for delivery in three months on the London Metal Exchange, the world's largest such bourse, gained $95, or 2.1 percent, to $4,515 a ton yesterday. The metal has averaged $3,078 a ton so far this year, compared with $1,392 in 2004.

Global zinc use will increase by 3.9 percent to 11.1 million tons this year, and by a further 2.6 percent to 11.4 million tons in 2007, the International Lead and Zinc Study Group said Oct. 9.
 
Re: KZL - Kagara Zinc

Nizar,

Hmmm, absolutely weird why didn't a takeover offer come a few months back when the SP was weak and undervalued

How much do Korea Zinc own of KZL?, and Insto's, Couldn't see them approving of a bid and back doorin Robinson, KZL's been a cash cow for them.
 
Re: KZL - Kagara Zinc

Freeballinginawetsuit said:
Nizar,

Hmmm, absolutely weird why didn't a takeover offer come a few months back when the SP was weak and undervalued

How much do Korea Zinc own of KZL?, and Insto's, Couldn't see them approving of a bid and back doorin Robinson, KZL's been a cash cow for them.

Korea zinc own 14% and K Robinson 11%
I suspect that maybe if we look back in 6 months, the current share price will seem "weak and undervalued"
 
Re: KZL - Kagara Zinc

Youre probably right, you seem to be on the mark with your Zincors.

I don't hold KZL anymore, I reckon their fair value ATM, won't go past 10 bucks by June and hence the return is no longer in them. Add that to the fact they have no policy on dividends so I would rather look elsewhere for another one with some of KZL's past growth record.

The above might change if their SP corrects though!.
 
Re: KZL - Kagara Zinc

Saturday's West Australian newspaper states that take-overs offers have been made and rejected .......will ther be more?....who knows....but it would have been nice to let the market know this....:mad:.....earlier.
 
Re: KZL - Kagara Zinc

pacer said:
Saturday's West Australian newspaper states that take-overs offers have been made and rejected .......will ther be more?....who knows....but it would have been nice to let the market know this....:mad:.....earlier.

It shows this company is here for the long term, and they are here to make profits, they dont just give out announcements as ramps for short term share price movements. They care about delivery shareholder value, after all K Robinson holds 11%. KZL is the best performing stock in the asx200. Those facts speak for themselves. I cant criticise this company they havent set a foot wrong.

Kim doesnt wanna sell for $8 or 9, because he knows the share price will go much higher, FY2007 will see profits increase 6-fold, what does that mean for the share price?.... :2twocents
 
Re: KZL - Kagara Zinc

Freeballinginawetsuit said:
I don't hold KZL anymore, I reckon their fair value ATM, won't go past 10 bucks by June and hence the return is no longer in them. Add that to the fact they have no policy on dividends so I would rather look elsewhere for another one with some of KZL's past growth record.

Funny guy... but you are entitled to your view.
I think $10 will be breached this year. They will earn $1/share in FY2007. And they will initiate dividends this year, i expect 10c/share myself.

KZLs growth will continue, dont look to the past bro, look to the future.

In 2006: 35ktonnes Zn, 6.5ktonnes Cu
In 2007: 50ktonnes Zn, 25ktonnes Cu
In 2008: 70ktonnes Zn, 40ktonnes Cu
In 2009: 100ktonnes Zn, 50ktonnes Cu

Thats pretty good production growth if u ask me. Will it require a large capex like other companies. NOPE.

Plus they are spending $1m+ on exploration, will they find anything? There track record says YES. ANd Admiral Bay to be drilled in 1q2007, they should define a large resource there.

And they have 17% of MLM, nickel up and comer, those nickel stocks are still low.

And u said it wont reach $10 by June??? HAhaha LOL
Why not?
Technicals are there, fundamentals are there.

This stock is a winner.
 
Re: KZL - Kagara Zinc

I certainly think the market factors in the future with companies and a current SP of a Company reflects this. KZL is no different,


KZL's fundamentals as a Company have been known for some time as has next years growth in them as management see's it, in fact they posted it in July (predicted earnings), on that particular day the SP tried to run but pulled back within an hour. Why?, because punters were still unsure of Zn and future pricing, since then the market feels a bit more certain about Zn and hence all Zincors have basically doubled (and KZL).

The market always factors into a Company the future in its current SP,
To note I accumalated KZL back then as I already made my assumption on the Zinc outlook and am now happy to have made my returns on said companies. I am out at this point with KZL. You are quite quick to quote the returns of experts vs other punters Nizar. Well my returns on my Zincors doubled from June to October Nizar and I have chosen to realize these gains Nizar. What wrong with that!.

At the time I was adding my input to ASF when many on ASF, (the experienced ones), constantly stated what about risk etc etc!. Well I disagreed, I made my call on Zn prior to the masses, traded my plan and took my profits. The same with Nicklers.

By the way I like KZL as with some others, and would certainly trade them again if the situation presents.


I probably don't agree with many of the experienced crew on ASF, then again I don't agree with much of the norm in much I do, maybe I'm just weird :confused:. But hey Nizar, I'm pretty comfortable in life, have done well out of the stockmarket and am confident I will continue to do so.
 
Re: KZL - Kagara Zinc

Freeballinginawetsuit said:
I certainly think the market factors in the future with companies and a current SP of a Company reflects this. KZL is no different,


KZL's fundamentals as a Company have been known for some time as has next years growth in them as management see's it, in fact they posted it in July (predicted earnings), on that particular day the SP tried to run but pulled back within an hour. Why?, because punters were still unsure of Zn and future pricing, since then the market feels a bit more certain about Zn and hence all Zincors have basically doubled (and KZL).

The market always factors into a Company the future in its current SP,
To note I accumalated KZL back then as I already made my assumption on the Zinc outlook and am now happy to have made my returns on said companies. I am out at this point with KZL. You are quite quick to quote the returns of experts vs other punters Nizar. Well my returns on my Zincors doubled from June to October Nizar and I have chosen to realize these gains Nizar. What wrong with that!.

At the time I was adding my input to ASF when many on ASF, (the experienced ones), constantly stated what about risk etc etc!. Well I disagreed, I made my call on Zn prior to the masses, traded my plan and took my profits. The same with Nicklers.

By the way I like KZL as with some others, and would certainly trade them again if the situation presents.


I probably don't agree with many of the experienced crew on ASF, then again I don't agree with much of the norm in much I do, maybe I'm just weird :confused:. But hey Nizar, I'm pretty comfortable in life, have done well out of the stockmarket and am confident I will continue to do so.

I started buying zinc stocks in january of this year. I have exited both KZL and CBH as of last week, and like you i have realised significant gains.

Where my thinking differed from yours is that u think KZL is fairly priced. I dont, i think its still cheap. My exit was in line with my overall strategy as i feared a correction after the US elections.

Nothings wrong with your strategy and nothings wrong with mine. As long as we are both profitable, thats the main thing. I just didnt like how u said that $10 wont be reached before June and thats what i disagree with.

I hope i didnt offend you, that was never my intention, just wanted to make a point.
 
Re: KZL - Kagara Zinc

Nizar,

As usual I agree with you. KZL is a well managed company, delivering on its exploration and financial forecasts and certainly in the right commodities.

It could well outperfom the market again and IMHO is one of the best outfits in the ASX, nothing is certain in the materials sector and its high risk vs great returns.

KZL could again double in the coming months, odds are in their favour and I'm bullish on Zinc and like their exploration targets. I'll trade them again (more than likely).

I like ADI at the moment and transferred KZL's holdings into them. From a certainty stock to a bit of a punt, its paying off ATM but that could change tommorow!, you gotta love the stockmarket. :)
 
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