Here are some:
1. Mostly a zinc company now. (Cu + Au only 37%)
2. Chimaera holds heaps of OXR in customer porfolios and needs to liquidate.
3. Institutions decide on heavier portfolio weighting of iron, copper, etc, and lower (almost no) zinc.
4. Power problems in WA unresolved. Costing OXR millions per week.
5. Rumour that OXR will release reasonable drill results this week but new CEO will include profit downgrade to 'clear the decks' (How many new CEO's do this?)
6. LT holders significantly reduced holdings today (first opportunity for tax reasons) as OXR is now a different company (revenue mix, direction, etc) and they don't want it anymore.
7. US and Europen index funds (indexed to overseas or resources) have strategically decided to reduce relative holding of OXR due revenue mix, metals forecast, FX changes and outlook.
Whatever happens to the sp tomorrow and beyond, the OXR Board decision to merge with ZFX must go down as the dumbest, most costly business decision of any ASX company in FY07-08.
Just days ago, when the sp was around $2.80, we were all talking about how it will be back to $4 soon. That was realistic - a 43% increase. Now, it would require a near impossible 62% leap!! Interestingly, before the merger, OXR derived 43% of its revenue from zinc. Now, it derives 62% of its revenue from zinc.
I rest my case. Time for a shareholders revolt!!!
OXR
oxiana limited
