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Company Information

Company at a Glance

Industry:
Metals & Mining
Fiscal Year-End:
Jun 10

Company Overview

KZL is an exploration, development and mining company with a focus on base metals such as zinc and copper. The company’s portfolio comprises multiple deposits located in Queensland, including the King Vol deposit. Zinc production is carried out at the company's Mt Garnet plant. KZL’s three base metal processing plants are located in Mt Garnet, Thalanga and Mungana. The company has been commissioned for the Lounge Lizard nickel and Admiral Bay zinc projects in Western Australia.

Company History

Kagara was founded in July 1981 as an unlisted public company to explore for and mine gemstones and tantalite in the Forrestania - Southern Cross Greenstone Belt in Western Australia. Kagara's focus shifted to Zinc following the 1997 announcement by Sun Metals to build a zinc refinery in North Queensland. Kagara Zinc Ltd was listed on the ASX on 22 December 1999. Production activities began in 2003. The company changed its name to Kagara Ltd in December 2007.

Industries Of Operation

KZL operates within the mining industry as an exploration company focusing on zinc, lead and copper. The process from initial exploration surveys to the definition of an ore body through drilling typically takes a number of years. Production methods vary depending on commodity, grades, scale of operations and opencut or underground mining. In recent years, approvals for mining developments have been slowed down due to stricter environmental controls and land rights issues.

Differentiating Factor

KZL's Mt Garnet production facility is located southwest of Cairns in Queensland. The plant sources a variety of ore from nearby wholly owned deposits in the Balcooma region to produce a range of base metals.

Major Customers & Competitors

Concentrates from the mining industry are generally sold to smelters in the main markets of Asia, Europe and North America. For metals, sales agreements tend to be short term and therefore subject to price fluctuations according to global price trends. To be viable as a producer, KZL will have to be able to compete with producers in Australia and overseas.

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Market Statistics

Market Cap ($M):
438.4
Equiv. Shares (M):
446.3
% All Ords:
0.04
12Mth Range ($):
0.47 - 1.32
Turnover ($M pa):
890.1
Index:
S&P/ASX 200
Sector:
Materials
Industry Group:
Materials
Industry:
Metals & Mining
Sub Industry:
Diversified Metals & Mining

Last 5 Market Sensitive Announcements

Date
Announcment
26-Jul-10 15:23
Quarterly Activities Report
14-Jul-10 14:19
Positive PFS for Admiral Bay Lead-Zinc-Silver Project WA
06-Jul-10 14:32
Commencement of Exploration at Forrestania
04-Jun-10 14:45
Kagara to mine Vomacka Polymetallic Deposit
16-May-10 20:47
Chinese Govt approves $23.8m investment in Mungana Goldmines

Calendar Of Events

Date
Event
02-Sep-09
EGM Date for Special Event
22-Apr-09
EGM Date for Special Event
07-Nov-08
AGM Date for Final Year Result
20-Aug-08
Reporting Date for Final Year Result
20-Feb-08
Reporting Date for Half Yearly Result

Directors

Name
Position
K Robinson
Chairman
M Ashley
Director
J A Treacy
Director
R Hutton
Director
J G Linley
Director
M McConnell
Non- Executive Director

Management

Name
Position

There are no recorded management positions for this company.

Substantial Shareholders

Name
% Holding
The GFTG Group
15.0
K Robinson
9.2
Transaminvest S.A
7.9
LONG TERM INVESTMENT FUND (SIA)
5.9

Consensus Recommendation Summary


0
1
4
1
1
Sell Under Perf. Hold Out Perf. Buy

Number of Brokers in Recommendation Summary: 7

Consensus Earnings

FY10 FY11
Consensus EPS1 (c) 4.0 6.4
EPS Growth (%)   59.5
P/E Ratio (x) 16.2 10.2
P/E Rel. All Ords (x) 1.45 n/a
P/E Rel. Sector (x) 5.41 n/a
Number of Brokers in Earnings Survey: 4 5

1. Consensus EPS is generally "reported EPS" but will vary as to whether it is on a pre or post preference earnings basis. This number is not always on the same basis as the Aegis EPS.

Historical Forecast Earnings And Recommendations

Consensus Recommendations

Consensus information provided by Reuters.

Consensus EPS Forecasts 1

1. Consensus EPS is generally "reported EPS" but will vary as to whether it is on a pre or post preference earnings basis. This number is not always on the same basis as the Aegis EPS.

Peer Recommendation Comparison

  P/E (x) EPS Chg (%) Dividend Yield (%) MktCap ($M) Price ($) Consensus Rec
  09A 09A 09A    
BHP Billiton Limited 14.1 (13.5) 3.2 134,646.0 40.12 Out Perf.
Rio Tinto 18.8 (56.1) 0.7 42,848.4 70.61 Out Perf.
OZ Minerals Limited 21.8 258.3 0.0 3,839.2 1.23 Out Perf.
Equinox Minerals 33.3 n/a 0.0 3,567.0 5.04 Hold
Kagara Ltd (3.4) n/a 0.0 438.4 0.65 Hold

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