HT, I think we can expect the cash balance to be around 150M less than at the half year. I have done some of my own calcs on future cash flows based on the information in the resource and reserve statements and the presentation. I get cash flows from PH between 2014 and 2019 of around 2.5B, assuming an average Cu price of 3.2/lb , and avg Au price of 1200/oz and an AUD of 0.85. This does not include any allowance for CAPEX at PH. So lets say CAPEX, exploration costs and corporate costs consume 1B over the 6 year period, that leaves 1.5B for funding Big C and dividends. Existing cash and the SFR stake is also worth around 0.5B. So assuming small dividends continue to be paid (maybe not in 2014), some debt funding will be required if the CAPEX is closer to 2B, a JV may be required if it is closer to 3B. This obviously assumes OZL can deliver on their production outlook.
OZL Price at posting:
$3.15 Sentiment: LT Buy Disclosure: Held
