long trend down, page-60

asf,

Whenever the OZL HC board has discussions like this, I try and come back to the OZL strategy document. That document drives behaviour at OZL like nothing else.

We know that SFR ticks all the boxes for OZL when SFR is compared to the strategy - TPA copper production, C1 cash cost, short term growth for OZL, 10 year mine life.

I look at IVA, and it fails - 21,000tpa of copper (< 50kt), C1 cash cost of $1.67 (fail), initial 4 year mine life (fail), other mines are also less than 50,000tpa. So, my initial view of IVA has changed.

I look at RXM and it falls between SFR and IVA - production is close to 50kt of copper for stage 1 and is at 70kt for stage 2, C1 cash costs are 70c to $1.20, Production is 4 years away at 2015, OZL needs something now.

So, my money is on SFR, with RXM coming a distant 2nd.

Notice the drop that SFR had today - ouch.

HT1