OZL 0.00% $26.44 oz minerals limited

imo ozl will move on sfr q4 2012, page-2

  1. 5,227 Posts.
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    Hi Ville,
    From SFR's high in late Dec, it appears to be in a long term downtrend. All the EMA's have turned as well. So the strategy of OZL waiting a while has been beneficial.

    I would be reticent to put a timing on a SFR t/o because I think that TB will want to see the results of the exploration programme first. If they find another P Hill, they may want to use the cash to bring this on line. I think it would be difficult (but not impossible) to do both.

    I agree that SFR provides near term growth and another P Hill (if found) is about 5 years away. Also C is 7 years away.

    The only other growth option available is the mining study of the Munda Zone and below the Malu deposit. Once completed, and approved, it could be brought on line quite quickly, but will also consume cash.

    Sorry for the rambling here; but what I am trying to say is that the ability to do a SFR t/o, a new P Hill, a Munda mining expansion and C may tax the cash flow and reserves. OZL may not be able to do all of them in quick succession w/o borrowing some cash. The cash consumer will be the SFR t/o, all the others, IMO, can be managed with the cash flow from P Hill, but then again, if SFR was purchased, it would provide additional cash to do the others.

    Let me think about it for a while and I will see what I can model.

    You raised an interesting point though.

    HT1
 
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