I was pomdering the future of the company in the context of its stated objectives of:
1. having both a base metals and precious metals focus, and;
2. intending to rationalise its non core investments and become a cash flow based produceer instead of a producer/investor
I also read an article from Eureka Report posted on the Oxiana thread (http://www.hotcopper.com.au/post_single.asp?fid=1&tid=629429&msgno=2610270#2610270).
I was contemplating the type of entity that an Oxiana may be interested in to build the scale of its operations and market capitalisation post the Prominent Hill commisioning later this year. They would still have in their pipeline the developmentof the Martabe gold mine in Indonesia, but what next?
The Ox already has a stated and active interest in gold exploration in China...it is a major zinc producer...it is a major copper producer. What does Newcopperco have in common? It has a major interest in a Chinese gold explorer (soon to become producer - TGF)...it is a serious copper producer with organic growth path within Australia...it has a 25% interest (joint with Xstrata) in the richest undeveloped zinc deposit in the world at Lady Loretta, Queensland...other gold and copper interests offshore, and most importantly a big stake in a prospective PGM group metal producer in South Africa.
In terms of "fit" with the Ox's strategy and existing commodity plays, this looks ideal. To potentially come with such a move would be some excellent human talent to supplement their already great team.
Just some musings on my part, but I cannot help but think that Owen Hegarty would be just the guy to identify this company as possessing the right ingredients to add further growth options to his terrific company. If the price languishes post the merger, I would not be surprised to see OXR emerge with a strategic stake en Newcopperco.
regards
DF
CUO
copperco limited
