buddy134,
Tthe analysis by Barry Fitzgerald in The Australian newspaper of the 14/8/2014 was "OZ has no debt but the run-down of its cash position to $155 million at the end of June, along with its preference to pay dividends, has renewed talk that it could look to exit its 19% stake in West Australian copper-gold producer Sandfire.
The stake was worth $187 m yesterday ,with Sandfire recent efforts to reduce its reliance on the DeGrussa mine by taking up a broad front of exploration opportunities outside of WA helping fuel the OZ sale talk. But Mr Burgess said we are not uncomfortable with the company. We think they are doing the right thing overall ".
The future of OZ Minerals lies in my opinion in its ability to find a buyer or partner for its Carrapateena project. It does not have the capacity to go it alone. That cash war chest OZ Minerals had has gone.
It would not be a good look if OZ Minerals did exit Sandfire as they have 19% of Sandfire. The money raised though would help pay future dividends if their current policy is continued. That $155 million held at the 30th June is but a fraction now of the $1 billion [ from memory] they once held in cash and Prominent Hill has not been performing that well either.
I read somewhere that Sandfire are exploring in the Cloncurry/MtIsa region. I wish them well
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