Hi MX, When investing, we can never be totally sure of anything, so yes, TB could be having a lend of us.
I have talked previously about company portfolio management. OZL just did it recently with Cambodia Gold. BHP is doing it with their Diamond operation. Teck did it with Carrapateena and OZL was able to pick up a 2.4mt copper resource. So, they are out there, we just do not know about them. They could be on the LSE, CSE or a private sale. We are not part of the Business Development team, so we are discussing from a point of view of very small knowledge.
I have no idea where OZL will find a 10 to 15 year copper resource that is going to production in about 3 or 4 years time. But he says they are looking and have done due diligence on some mines, so do I trust him or not? Everything else he has said about production guidance and capital spend and timing has either been spot-on or he has updated the market when it has changed - so in my book, he has delivered on his promises in his control.
MX, I agree that he is in a difficult position. History shows that M&A has historically destroyed shareholder value. He has consistently said he does not want to do that. Also, his approach seems to be multi pronged - that is, he has not put all his eggs into the M & A basket.
Prong 1 - increase the P Hill reserves - being done with drilling out under the open pit mine - in progress. This has the high likelihood of extending P Hill mine life.
Prong 2 - near P HIll exploration - will continue for another 21 months - if nothing found - call it quits.
Prong 3 - progress C - being done and on track or even a little early - decision on exploration shaft by June and sinking next year with the cash to do it.
Prong 4 - Business Development - M and A.
HT1
OZL Price at posting:
$10.04 Sentiment: Hold Disclosure: Held
