An extract from the AUSTRALIAN this morning - you can read the...

An extract from the AUSTRALIAN this morning - you can read the full story in the BUSINESS section under "Merged Oxiana-Zinifex eyes coal seam gas":


"Oxiana is currently preparing to produce 200,000 ounces of gold and 2 million ounces of silver a year from late 2009 at the Martabe project in North Sumatra. Mr Michelmore said energy acquisitions could come in the form of small or large purchases.

Credit Suisse analysts have downgraded Oxiana, which is technically taking over Zinifex and being renamed, to underperform from hold on post-merger valuations.

"We remain positive on copper and see this as a key driver of the outlook for OZ," Credit Suisse analyst Michael Slifirski said. "However, the company will be judged on the perceived performance of the new management team, and the quality of the acquisitions."

After the merger, shareholders of Oxiana and Zinifex will hold 50 per cent each of the new company."