BRETTO50,
There was an article on OZ Minerals in last Thursday's The Australian relating to the possible sale of part or all of its $3 billion dollar Carrapateena copper /gold project in South Australia. It looks like it cannot go it alone. Oz minerals only has its Prominent Hill and it improved its loss for the period down from $36.1 million to $14.3 million dollars The report goes on to say that much to the annoyance of analysts but to the delight of shareholders ,OZ has declared a steady unfranked dividend of 10 cents
It goes on to state that OZ has no debt but the run down of its cash position to $155 million ,along with its preference to pay dividends, has renewed talk that it could exit its 19% stake in Sandfire.
The stake was worth $187 million yesterday, with Sandfire's recent efforts to reduce its reliance on its DeGrussa mine by taking up a broad front of exploration opportunities outside of WA helping fuel the OZ sale talk.
Mr Burgess of OZ said "We are not uncomfortable with the company. We think they are doing the right things overall."
In another article in the Weekend Australian it was stated "Even trouble prone copper miner OZ minerals dispensed a ten cent dividend despite posting an underling loss of $14 million"
It should be noted that M@G recently sold down part of their holding in OZ Minerals. Let us hope for the shareholders of OZ they do not do to OZ Minerals what they did to CuDeco.
What would concern me if I were a shareholder in either OZ Minerals or Sandfire is what happens when DeGrussa runs out . They may be fortunate to find another resource to extend or replace DeGrussa but there is nothing definite at this point in time.
CDU Price at posting:
$1.68 Sentiment: Buy Disclosure: Held
