Well the chicken and the egg argument might have been the market rebound and Rio bid for boosting BHP Billiton's share price.
But for emerging miner, Kagara Ltd, the key factor in a share price fall was a production and exploration update containing surprise news of a lower first half profit that drove the share price yesterday.
Kagara's share price leapt strongly at the opening, along with the rest of the market and rose by around 13% to a day's high of $4.35 before the production and exploration report was released just after noon, showing a 12% drop in unaudited first half earnings.
The market didn't like that one bit and the shares fell sharply, to bottom out at a low of $3.63, down 19c on the day.
Even in the euphoria of the first positive day's trading yesterday in 13 days, investors were not forgiving.
Kagara said pre-tax earnings fell and its zinc and lead production volumes fell in the December quarter.
The copper and zinc producer said unaudited profit before tax was $51 million for the six months to December 31 compared to $58 million in the prior corresponding period.
Zinc and lead production from the North Queensland Mt Garnet polymetallic plant was in line with budget but lower than the record production of the September quarter due to treatment of lower grade ore from the Mt Garnet ore body.
Copper production for the December quarter hit a record 6,956 tonnes with most of the increased copper production coming from the Thalanga copper plant in Queensland.
Despite the production issues, Kagara chief executive Kim Robinson said profitability remained high.
Production of copper and zinc for the full year is on target to exceed forecast levels of 30,000 tonnes and 40,000 tonnes respectively, Mr Robinson said.
"Cash cost for copper production at $US1.37 per pound was significantly less than the previous quarter but cash operating margins were also reduced to $US1.60 per pound of payable copper, as a result of lower copper prices in the December quarter," Mr Robinson said in the statement.
"Although zinc cash costs were only marginally higher at $US0.56 per pound of payable zinc due to treating lower grade, harder Mt Garnet ore, cash operating margins fell significantly to $US0.46 per payable zinc as a result of a 30 per cent decrease in zinc prices during the quarter."
Mr Robinson noted several important exploration discoveries had been made in the December quarter, which are now moving towards development.
"These include the Admiral Bay zinc-lead-silver-barite deposit, the Waterloo zinc-copper deposit and the Lounge Lizard nickel deposit," he said.
"Also this week an outstanding zinc-copper intersection was announced at depth beneath the Victoria line of workings."
Earlier in the week Kagara announced that the first diamond drill hole completed at the Victoria prospect near Chillagoe in far north Queensland had intersected zinc, copper and silver.
Mr Robinson said in the December quarter the Environmental Protection Agency did not require an environmental protection study for the development of Mungana, 15 kilometres from Chillagoe, in north Queensland.
"Construction of the treatment facility is expected to start in March 2008," he said.
"The Mungana deposit which is currently being developed as an underground operation will provide the initial feed into the Mungana treatment plant.
"This is a very high grade zinc and copper deposit which will enable Kagara to double its zinc production by March 2009."
Kagara said it has cash and receivables as at 31 December 2007 of $58.6 million.
It said the half year financial results will be available on February 20.
