price movement, page-34

OZ tops up stake in Sandfire
PETER KLINGER, The West Australian September 27, 2011, 1:04 pm
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The West Australian ©
OZ Minerals is understood to have made the most of the downbeat equity market conditions to top up its stake in Sandfire Resources, in a move that is likely to reignite takeover speculation.
It is understood that OZ waded into the market late last week and acquired 1.8 million shares, or just under one per cent of Sandfire.
The buying increased OZ's stake in Sandfire to 19.83 per cent, just below the takeover threshold, and cements its position as the biggest shareholder in the company.
Perth broker Argonaut, which was instrumental in arranging OZ's entry onto the Sandfire register in June last year, is thought to have carried out last week's on-market purchases.
The buying will offset some dilution in OZ's equity position earlier this year when the exercise of Sandfire options dropped its stake from 18.89 per cent to about 18.6 per cent. OZ does not have to disclose the latest buying because it amounts to less than one per cent.
Sandfire, along with all mining stocks, has felt the full brunt of the sharemarket turmoil and seen its shares plummet from $7.07 a week ago to as low as $5.52 yesterday.
The main driver of Sandfire's share price rout was a collapse in copper prices on the back of concerns about the state of the global economy.
Sandfire shares were up five cents to $5.67 at 1pm.
Sandfire is in the midst of developing the $400 million DeGrussa copper-gold project north of Meekatharra. It is based on WA's best copper discovery and one of Australia's most valuable mineral finds in the past decade.
OZ's move onto the Sandfire register last year, at $3.85 a share, sparked immediate takeover speculation. Cashed-up OZ's principal asset is the Prominent Hill copper-gold mine in South Australia and it has been under pressure from investors to diversify its asset base.