How clear do they need to be with their growth path? Terry Burgess's presentation in July to the Sydney Mining Club says it all. His priorities are PH and building a project pipeline.
It's clear what they're doing at PH. His view is that mine life is "routinely underestimated". He's confident of finding more ore in what he considers the "most prospective IOCG copper ground in Australia".
In respect to building a project pipeline, he makes it clear that they want to add more copper assets, particularly ones which can deliver production in the near-term. They've got a BD team looking at "many, many" opportunities. I get the impression that they understand value. On that basis I think we'll see a return of capital to shareholders before they jump into something which is not going to suit them.
They've clearly got Sandfire firmly in their sights. If the De Grussa feasability stacks up, I reckon they'll make a move. Should be perfect timing from a cash point of view.
OZL Price at posting:
$16.30 Sentiment: Hold Disclosure: Held
