Hi Byron
I have to agree with these guys and disagree with you on the suggestion you make re: SFR taking over OZL - (as per SFR thread) it is not feasible and these other guys have let you "have it".
I think your comment that "...OZL is in trouble...." also is a little too harsh, it remains a good company with exploration upside though it may take patience.
HOWEVER I do support you though on the gold credits and rising costs to be faced by going underground and also potentially sub 1% grades and potentially diffrent ore types, it is an issue OZL faces but it may be offset by "stronger for longer" copper prices with falling head grades worldwide and increased economic activity.
These is a wide divergence of analyst views that OZL is fairly priced / over priced and some of those reflections maybe referenced to such issues.
I will support you and refute some of the comments made against your post re: SFR - SFR will be a producer in 8 months time +/-, when cutting the open pit they will get direct access to 44,000 T of copper within Direct Shipping Ore (that is they dont have to process it into concentrate - they just dig it out and ship it off) - $387,000,000 revenue at just $4/lb + a further 44,000 T of Oxide to be treated.
OZL averaged $3.45/lb for the year from memory to make the $400m net - at that price the tiny tiny tiny SFR will spit out a NP of circa $300m - Grade is King. OZL capitalisation is $4.5b excluding cash, SFR capitalisation is $1.4b (includes $200m debt for construction)- Interesting comparison I think.
- Forums
- ASX - By Stock
- OZL
- should sfr takeover ozl?
should sfr takeover ozl?, page-10
-
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)