You buy this company is you have a positive outlook on commodity prices....simple as that. We know the costs which seem to be quite good (I think Century mine is showing zinc produced at $0.63/lb including $0.08/lb prestrip which will then bring it back to $0.55).
On top of this, copper production to accelerate through Prominant Hill and we have a very strong producer being set-up to take full advantage of a rebound in commodity prices which have fallen significantly.
I do think it has immense appeal as a takeover target. I'm sure we will hear some whispers about this in the short term which should see its share price have some strong trading days.
OZL Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held