OZL oz minerals limited

afr article, page-9

  1. 5,227 Posts.
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    Mineweb had this article about an extension of a copper mine in Zambia. Here is the link

    http://www.mineweb.com/mineweb/view/mineweb/en/page36?oid=153836&sn=Detail&pid=36

    What I found interesting was the cost and tonnes when compared to OZL.

    KCM plans to increase production by 35,000tpa at a cost of $180m
    OZL Ankata is planning to produce 25,000t for $148m

    KCM’s capital cost per tonne of yearly copper production = $5,142
    OZL’s capital cost per tonne of yearly copper production = $5,920

    OZL’s capital cost per tonne of yearly copper production is 15% higher than KCM’s

    For OZL holders, the question that needs to be asked is whether 15% extra in capital costs is worth the reduction in risk?

    Now, I know that there is not a 1:1 relationship here and the comparison is a bit “loose”, but it does provide some data that can help holders reassess their positions.

    HT1
 
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