I personally believe that the price should be around 85c based on Prominent Hill production.
Against this belief I have two main worries.
1) That the Chinese are buying copper now to build up there stockpiles. they are over exposed on holding US dollars and are buying metals and companies to reduce this exposure. Hence recent price rises may be unsustainable in the medium term and copper price may drop back.
2) Some instos and others may succeed in blocking the MM bid. This worry will be resolved on June 11.
3)The suspect loyalties and uncertainties of management. Don't know when this will be resolved and probably nothing can happen on this front until after June 11.
The market may be punishiing this stock in the short term because of these risks.
If bid is approved I think this is a good long term buy.
OZL Price at posting:
$7.15 Sentiment: Hold Disclosure: Held
