Minmetals was prevented from acquiring Prominent Hill due to its location within the sensitive Woomera area - so that precedent effectively rules out the Chinese.
As for other acquirers - where is the upside in OZL that justifies paying an acquisition premium? (PH is coming to the end of its mine life, and Carapateena is a high technical risk greenfield project).
Significant proportion of OZL value is now made up of cash and SFR shares - so would you pay a premium to acquire these?
Conclusion is - probably not (but you can never rule this out).
2. Is OZL a horror story I think you have a fair point in relation to the senior management - how much should they be paid to manage what is effectively a company with one mine and a development project.
As you point out, OZL have failed to build a project pipeline - and as all mining companies are based on a wasting asset base, it is key to replenish this asset base (find, develop or acquire new reserves).
I think you should be worried. In the short term, the stripping ratio at PH will fall, and PH will generate more cash, but 3-5 years out?
As a corporate it is better to have a strategy (OZL = pure copper, >50ktpa Cu pa), but unless you are prepared to adapt your strategy as circumstances change it will not do you much good.
OZL's strategy appears to have failed - so question is how are they going to adapt to changing circumstances.
OZL Price at posting:
$3.42 Sentiment: None Disclosure: Not Held