Ann: Quarterly Report for the Three Months ended , page-13

re: Ann: Quarterly Report for the Three Month... Stef,
The "what to do with the cash" is a very interesting question that has been on the minds of a lot of investors and analysts.

The company continues to iterate that it wants to purchase a 50,000tpa to 150,000tpa copper mine either in production or on it's way to production. It has walked away from NorthParkes due to not meeting the tonnes hurdle rate. PNA would fit the bill, but with a market cap of $1.6B plus t/over premium is a big ask and I suspect would not meet it's return on equity hurdle rate.

It can use the cash it has for P Hill u/g, Cambodia Gold and if another P Hill is found, developing that mine site, but with cash generation from P Hill being so large, it is still throwing off more cash than it can spend.

BHP also has been hoarding cash, because up to now, it has not thought the worst is over (that tune is subtly changing though).

Potentially, it is looking at LME stock piles and POC and probably thinks that if it can be patient and wait, then opportunities might arise in the next 6 months. Also, irrespective of what the POC does, it has the cash to continue it's development pipeline. The ability to invest throughout the business cycle is extremely important becasue you are then ready for the next upswing (think BHP vs RIO).

As shareholders, we either believe and endorse the strategy and hold and potentially accumulate, or we do not and sell when the opportunity arises.

I would much prefer to retain my position in OZL than some other mid cap miners as the ability for OZL to weather any significant headwinds (and potentially gain from them) is probably better than some other mid cap miners or explorers.

But a small dividend and/or small share buyback would be very nice.

HT1