First of all thanks for reading my message it's nice to know somebody takes the trouble to read it !I agree that copper prices have strengthened recently in A$ terms but these still fall about 10% short of the A$4 average stated by OZL from the 2011 annual report. IMO that is a significant difference . OZL (IMO) were fortunate that the increased copper prices coincided with the mining of the Prominent Hill open cut. The problem is that there is nothing on the horizon to replace it. Carrapateena is unlikely to be as profitable ; U.G. mines near P.H.just don't have the grades to make up the profit loss on losing P.H. OZL still have the SFR investment but it looks to me that they are relying on a depreciating Oz dollar to get them over the line ! With a weakening Balance Sheet it's disgraceful that they wrote off over A$133m of long term share holders funds on some weird "capital management initiatives".That is of course only my opinion I'm probably wrong. I think they would have been better to have gone for RXM too ! Best of luck to all!
OZL Price at posting:
$3.12 Sentiment: None Disclosure: Held
