invest in ozl or stay away?, page-4

Just adding to Ville's comments

C1 cash costs at the lowest quartile.

Company showing good restraint in making sure that any purchase is value accretive to shareholders. They are not doing a RIO and appear to not be willing to pay over the top far an asset.

Class action, if proved, will probably be paid for by insurance, so no significant impact on sp.

Now for the negative. This comes from UBS. In summary base metal stocks could be very volatile. There could be high reward, but also high risk.

Did you know that close to 1/3 of the World?s current base metals are held in storage ? with no plan for this stock to ever be used for production purposes? This commodity stock is simply held for speculation, to back the World?s largest Commodity Funds (ETF?s).
Last week, US Investment Bank giant JP Morgan, waded into the London Metals Exchange (LME) and purchased one half of the globe?s available palladium supply in one day, to begin to seed their upcoming JP Morgan Commodity fund.
The Russian Government and large Russian Resource mining companies are alsofollowing suit. I see this strategy as a major ongoing concern for investors, likening it to a ?ponzi scheme?, or pyramid scheme. Consequently as investors ? almost guaranteed if you are invested in base metals or commodities you will generate seriously large returns over the coming years due this relatively new and explosive global demand for commodities. In time though - this rollercoaster ride will be interrupted many times over the coming years.
Just last Monday, the LME also decided to launch it?s own 3 key Commodity Funds. These metals will not be used for any purpose other than to back the underlying investor?s funds. A concern by UK regulators is that this speculative hoarding of physical stock will continue to drive a further supply squeeze on commodities such as copper and palladium, which are already experiencing an unprecedented supply shortage. China is literally screaming for copper, with UBS believing this supply shortfall of copper may take another 10 years to work through the system, until this supply/demand imbalance is negated.
Since the year 2000, commodity assets under management globally have risen a staggering 3,500 percent. The danger moving forward is that this will create instability in base metal and commodity markets. This flow of funds can just as quickly reverse if commodity fund investors decide to lock in profits. Or in another instance, should the USD begin to reverse and stage a recovery. This in itself could spur a mini commodity crash.

HT1