I am a long etrm holder of OXR and am disapointed with the situation at the present time, margin calls etc.
However I am still a beleiver in the future of the company.
If its a merger of equals then this would be the case:
oxr @ $2.34 = ZFX at $7.46. This would be the value placed on zfx if no merger would have taken place.
If there was no merger what would the 2 share prices be?
It seems everyone is blaming zfx and the price of zinc.
And right now its not looking good, but what if (As OH and AM stae ) zinc will do a turn around. Say it reaches $1.50 be year end, what price would OZL be?
Maybe the timing wasnt the best. Last year when zfx was say $18 and oxr $4 it would have been 4.5 shares and not the 3.19 shares.
If it had started this month OXR may have been say $3.00(with lower market overall, and ZFX maybe $7.50 so it would have been 2.5 shares.
At the end of the day , they are giving cash and some good mines, it may not have been the sweetest bet times deal of the moment but in the longer term it will prove to be a valuable merger.
I remember when oxr bought Golden Grove, the same thngs were said and the share price fell as well, only to bounce back stronger.
Just my rambling thoughts opinions appreciated, and I hop they announce something VERY VERY soon so all the smart shorts will SHORT their PANTS BIG TIME.
OXR
oxiana limited
I am a long etrm holder of OXR and am disapointed with the...
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