cdu shorting activity, page-177

Think CDU is being punished by the market spare a thought for OZL investors !

"Oz Minerals has told frustrated shareholders that its near record low share price has no effect on the company's higher underlying value.

The copper miner's board was greeted by hostile investor questions in relation to the plunging values of their shareholdings, including a near halving in just over three months.

Market sentiment around Oz Minerals has been buffeted by a weak copper price and its own rising mining costs that left the miner barely breaking even in the March quarter with a weaker production outlook for this year.

There is also uncertainty about where the ageing single-mine company's future production is coming from, although Oz Minerals says it is confident of extending its Prominent Hill's life to 2030.

"Like most resource companies we are trading at a very significant discount to our fundamental value: be that our NTA (net tangible assets) or any net present value calculation," chairman Neil Hamilton said at the company's annual general meeting in Melbourne.

"I can't tell you why such a discount is justified.

"It is industry-wide ... perhaps the discount is greater because of where we find ourselves in this life-of-mine program and because we are going through this period of tough cashflow."

"One investor on Tuesday, who described himself as disgruntled, pointed out that the company had thrown away money by buying back $200 million in shares at $10.51 and $9.18 each over the past two years.

"There was no tangible benefit to the average shareholder from those buybacks ... for the same $100 million per year, the dividend could have been increased by 30 per cent," the shareholder told Mr Hamilton."

Full article here !