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KAGARA LTD (KZL)

KAGARA LTD (KZL)

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General Information
Company Name: Kagara Limited
Stock Code: KZL
Website: www.kagara.com.au
GICS Sub-Industry: Diversified Metals & Mining
Market Cap ($M): 96
Equiv. Shares (M): 799

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.120 $ 0.000 $ 0.000 $ 0.000 $ 0.120 0 0%

Current Broker Consensus Recommendation more
Recommendation: Sell
Recommendation Date: 17th May 2012
12 Month Target Price (average): $0.17
Brokers Surveyed: 1

Company Overview

Business Description:
Kagara Limited (KZL) is an Australian based miner. Operations include Mt Garnet, Thalanga and Mungana base metals in Queensland. Mt Garnet produces zinc, lead, copper, silver and gold while Thalanga is primarily copper. Growth options include large, low grade gold/copper deposits at Mungana and Red Dome in Queensland through majority owned Mungana Goldmines.

Strategy Analysis:
KZL´s aim is to become a dominant ASX listed base metals producer. This will be achieved through an aggressive exploration program to build resource life. KZL is focused on business improvement and increasing the skills of the group. The longer term goal is to grow production to 120,000t of zinc and lead and 30,000t of copper by FY16. KZL is also progressing development options for the zinc resource at Admiral Bay. Kagara reported a net loss of $32.24m for the year ended 30 June 2011. Revenues from ordinary activities were $240.66m, up 8% from last year. Diluted EPS was (4.70) cents compared to 0.55 cents last year. Net operating cash flow was $15.31m compared to $36.54m last year. No dividend was declared.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2012  F 42.0 5.9 397.5 2.0 0.0 0.0 0.0
2011  F 8.4 1.2 116.4 10.1 0.0 0.0 0.0
2010  A 3.7 0.6 -- 163.5 0.0 0.0 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F
BHP Billiton (BHP) $102,742 M 0.3914 -0.0372 0.2637 8.7762 9.1155 7.2131 0.0294 0.0352 0.0372
Iluka Resources (ILU) $5,259 M 13.0255 0.5928 0.5960 10.3888 6.5223 4.0867 0.0597 0.0796 0.1027
Kagara (KZL) $96 M -- -- 0.9231 -- 2.6374 1.3714 0.0000 0.0000 0.0000
Rio Tinto (RIO) $24,559 M 0.1301 -0.0179 0.1738 7.1298 7.2595 6.1846 0.0253 0.0290 0.0323
Sims Metal Management (SGM) $2,522 M 0.4412 -0.1701 0.6612 13.1777 15.8782 9.5584 0.0384 0.0361 0.0471

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
KZL -- 3.26 0.19 0.03 0.35
Market 0.80 12.1 1.33 1.35 1.68
Sector 0.41 9.48 1.05 1.04 14.3

Directors
Name Position Start Date
Mr Geoff Day Chief Executive Officer,Managing Director 23 February 2011
Mr Joseph (Joe) Allen Treacy Executive Technical Director 15 June 1999
Dr John (Shad) Gordon Linley Non-Executive Chairman 01 March 2005
Mr Kim Robinson Non-Executive Director 28 September 1981
Mr Ross Clive Hutton Non-Executive Director 23 July 2003
Mr Mark Steven McConnell Non-Executive Director 17 July 2009

Management
Name Position
Graeme Collins Chief Operating Officer
David Peterson Company Secretary
Ian Morrison Exploration Manager

Substantial Shareholders
Holding Name
37,100,000 (5.17%) Sia Funds AG
35,500,000 (4.94%) IOOF
35,900,000 (5.00%) De Burtoli Wines Pty Ltd and associates
45,100,000 (6.28%) JP Morgan Chase & Co and its affiliates
5,200,000 (0.72%) Prosperity Steel United Singapore Pte Ltd

Calendar of Events
Date Event
30 April 2013 Report (Quarterly)
05 March 2013 Report (Interim)
10 January 2013 Report (Quarterly)
09 January 2013 Report (Quarterly)
09 October 2012 Report (Quarterly)
19 September 2012 Report (Annual)
21 August 2012 Report (Prelim)
11 July 2012 Report (Quarterly)
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