there have been talks about using the available to make acq of either a miner or explorer. the reasons are stock prices are stressed and hence a good opportunity to be engaged in such activity. however, there is a better way of using the cash: to have an on-market share buyback.
the buyback will have the following benefits: 1) buy shares at a significant discount. while mining stocks are generally under valued, ozl share price is under the most stress. buying ozl shares at current price or <$1.30 represent good value for the company.
2) the buy back, even if symbolic, will support the ozl share price help it to reach a level that represent fair value. A higher ozl share price will be beneficial if the company are to make an equity/cash acquisition.
Ozl is cash positive and has a large bundle of cash at hand. doing nothing with such a large bundle of cash, well it does not represent good management.
OZL Price at posting:
$10.40 Sentiment: ST Buy Disclosure: Held
