Ann: OZ Minerals 2009 Half Year Report (inc Appen, page-27

re: Ann: OZ Minerals 2009 Half Year Report (i... HT and others

I agree with most of the comments here. I am disappointed taht the SP has dropped on the back of waht essentially is a good report.

I think the problem is that OZL are not likely to pay dividends in the short term which means that those wanting income in the short term have fled to other stocks. This may dampen SP appreciation until all the tax credits are used up.

Seems that the main way that the SP will appreciate in the short to medium term is for
a) A lot more long term buyers enter the market
b) Takeover is announced (or rumoured)
c) A share buy back is announced

I would prefer a share buy back of 5% of the stock which at $1.20 per share would cost approximately $198 million. Given HT's estimates of a profit before tax of between $240 and $400 million, this would mean they could do this and still be making money for exploration etc leaving the current balance of funds untouched and in reserve.

Any thoughts on this?
Are we likely to see strong SP appreciation before 2012 and what would drive it if dividends are not going to be paid out until then.