is oz about to swoop, page-15

"Lets just come back to some facts.

1. OZL has $300M net cash (1.2B ex ZFX and $900M debt ex Oxiana in developing PH)

2. $300M does not buy much"


ok lets come back to some facts .... good idea

can you read a balance sheet?

look at page 29

http://stocknessmonster.com/news-item?S=OZL&E=ASX&N=303624

there is $552 m of long term and short term debt

and there is $1,912.5 m of current assets

of that amount $1.2bn is cash

you are saying that the inventory is worthless
the trade and receivables that is money owed is worthless
money owed by the tax office is worthless
and
the assets held for sale are worthless

if you add all these you have about $1.1 bn

not only that once Prom Hill starts producing the company will produce $1.1 bn in cash flow


that is $2.2 bn

having a) $1bn in assets that can be readily converted to cash and b)$1bn in cash flow means OZL can probably borrow more money.

the company has $5.4 bn in equity
the company could borrow $2 bn and only have a debt/equity of 40%

$2bn x 10% interest rate = $218 in interest
interest cover = ($1bn / $200m) = 5 times

$1.4 of new borrowings
$1.2 of cash
ozl could probably spend about $2.6bn if they wanted to buy a company
maybe more

v
v
v


interest bearing liabilites

current $392.6m
non curretn $159.5m
total $552.1m

Current assets
Cash and cash equivalents $1,233.8m
Trade and other receivables $182.4m
Inventories $268.5m
Current tax receivable $56.0m
Prepayments and other assets $27.2m
Assets classified as held for sale $144.6m
Total current assets $1,912.5m