ask yourself this question., page-5

In how many ways are you wrong? let me count them:

1) "Why would M&G and their parent company Vanguard"

M&G's parent is Prudential PLC. M&G manage a fund for Vanguard. The same fund manager is doing all the selling.

2) " for no reason"

Wayne has stated that there is a reason - M&G are sick of the delays.

3) " and then using that cash buy on market in OZL"

M&G reported buying 1m Shares in OZL on 17th May. So about $4m worth. They also reported selling 3m shares a few days before. From the substantial, the global basics fund was a buyer, and the Eastspring high yield fund a seller. There have been no substantial changes since then, yet they've sold about 8m CDU Shares at an average of about $2.50 - so $20m. They aren't using that cash to buy OZL, indeed they haven't bought since they started selling CDU.

4) "OZL's Prominent Hill Open Cut is coming to an end and production from the Underground will reduce the throughput by approx 70% "

Actually that's nearly true! Take a short holiday.

Did you enjoy it? Prominent hill open pit is closing soon - if you count 2018 as soon. Wonder if CDU will have produced anything by then? They're also mining underground in parallel - about 1.2Mtpa of ore for 6 years, and looking to extend mine life by drilling out underneath the Malu open pit. And production isn't expected to drop 70% - it's expected to continue at around current levels of 100kt Anyway, that's not really the story at OZL. They had $660m on net cash on the balance sheet as at Dec 12, so over half their market cap is cash. Add in their stake in SFR (c$175m) and you're up to 2/3 of their market cap. Prominent hill and Carrapateena are only valued at 417m, plus they're looking to buy North Parkes off Rio.

Now I can get all this information about OZL from public sources - yet we don't even have a scoping study, let alone a PFS, BFS or DFS from CDU. They're building a mine, but noone seems to know when the crusher will arrive, whether they're going to ship native copper, what the metallurgical recoveries will be, or even when they expect mining to commence! All we have is a crappy JORC resource, a few pretty picture, and lots of promises from management.

What I find amazing is not that M&G are selling, it's that they bought in the first place...