Carapateena indeed looks like a great future asset in the making, but it is not yet an operating mine generating cash. Lots of work and $ to do to get it there with some risk but fingers crossed it goes well in the long run. PH is a fine and profit generating asset.
We have a talented mining operations team in OZL - they generate the cash.
OZL board however does deserve a little criticism IMO. It wont hurt them to be reminded that a talented board should be able to employ available capital to maximise shareholder benefit. Or at least return what is not needed to holders. Having a healthy balance sheet is good but if the cash is excessive for an extended period of time it sadly indicates the board has an inability to employ it effectively to fast track development, or an inability to negotiate good M&A deals, or perhaps just plain indecisiveness when you consider how long it has taken to decide to accelerate Carapateena?
If aquisitions are too risky why did M&A get pushed as a priority in every quarterly? Romania - do people remember OZL board thought that was a good idea to invest in romania? Thank goodness that fell over. Was that not risky?
Now having said all of this I think the operations team will eventually save the day for holders as we move into 2014. Overburden removal will reduce next year and profits shall return so long as copper and gold prices hold up like they are today we should all do well. We may see other factors assist us - like AUD exchange rates but as usual there is risk on all fronts. To congratulate the board for sitting on more cash than they needed to sit on is not really warranted IMO. Get to it operations, maintenance and exploration teams and generate the good news in our existing assets! Hopefully the bottom is now well behind us at $6. Below $7 I'm a buyer as much as my cash position permits.
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