a share buy back, page-38

can we truss the OZL board to do this if they went ahead with a buy back, how have ther past in explaining things to the market stood up.

“When a buy-back is not well thought through and done for the wrong reasons, it can spook investors,” Elston says. He explains that this is the reason whymining industry executives, such as BHP Billiton CEO Chip Goodyear and Anglo American CEO Tony Trahar, have gone to lengths to explain why the companies were buying back their own stock in the midstof the investment opportunities offered by the commodities boom. Supported by record prices for commodities, these companies have found themselves with extra cash on hand that they are unable to spend, as there are a limited number ofprojects in which they can invest that meet their internal rates of return.

Elston advises that, when evaluating a buyback programme, it is important to determine whether a company has indeed set itself up for medium to long-term growth by taking intoaccount current and future growth projects and prospects.










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