I look at copper at $4/lb and Gold > $1,400 oz and think that the company is punching significantly above it's weight. I suspect that OZL could make in excess of $700m Ebit this year. With a market cap of approx $5B, that gives a p/e ratio of about 7.
With one commodity in the portfolio and one mine, that is quite reasonable, but project forward to forecasts next year when copper could spike to $5/lb. That is a 25% increase. So a sp of $2.05 is not unrealistic.
As hammerhead has said, OZL management is doing their utmost to grow the business, and the single most beneficial way to grow th OZL sp is to find another P Hill close by. IMO, they are putting shareholders money to the best use by spending it on exploration at P Hill.
Also, OZL will continue to move resources to reserves. The current open cut mine life can be extended and there is significant gold to be mines as well.
Unfortunately, all this takes a lot of time.
HT1
OZL Price at posting:
$16.55 Sentiment: LT Buy Disclosure: Held
