buy buy buy

Sunday Mail Money Section 14 february 2010

Your Portfolio

Mark Potter (BAKER YOUNG)
A RECENT correction in copper and gold prices has helped drive an approximate 25% pullback in the OZ minerals share price and creates a sound buying opportunity for value players at current levels. OZ's stock is trading in line with its book value, has no debt, cash on the balance sheet approximating $0.40 per share and an operation at Prominent Hill producing above its nameplate capacity. Prominent Hill operates in the bottom half of the industry cost-curve with attractive exploration and expansion upside.

Lachlan Heysen (MACQUARIE PRIVATE WEALTH)
OZL'S Prominent Hill result came in ahead or our expectations with revenue of $600-620m well ahead of our forecast $578m. OZL is now a much simpler company with a strong operating asset in Prominent Hill and a net cash position of $1 billion. OZL provides investors with copper leverage with the lowest operating risk of the pure copper plays and is now trading at a discount to our net present value of $1.21. We have a 12- month price target of $1.25