I see OZl as a safe company, and now producing and reporting great results. I see the low SP as a result of suspicions of Copper price correction as the stockpiles build and fears of further troubles in the world economy hitting demand. I think these suspivions and fears are a little overplayed and OZL has been oversold.Even at the depths of the GFC it would still be profitable on todays production costs.
I expect the SP to drift upwards over the next few weeks, but I am forming the view that the only way the SP can rise above a ceiling around $1.25 is either 1) Annouce a dividend for this year and into the future 2) announce a Share buy back 3) Announce some significant exploration results.
To this end I think OZL should be more aggressive in its exploration activities, with more frequent reporting. The more frequent reporting would also serve to remind people that this company has a good upside and is more than a one trick pony.
I believe exploration costs are lower now due to a pullback by explorers. This is reported in this weekends papers, particularly in respect of drillers, so now is a good time for exploring. Probably also a good time to be constructing plant and mines.
Oh and HT, a good thing about a forum like this is that people can choose to read or ignore posts. I choose to read yours and value them.
OZL Price at posting:
$9.80 Sentiment: Hold Disclosure: Held
