m&a opportunities improving for ozl

It could be an interesting period for OZL. Remember about this time last year they snagged 20% of SFR during a bear patch in the market.
I personally think RXM could be ripe for an OZL takeover. It is a more risky proposition to SFR but has a few advantages, including:
- Market Cap 340M compared to SFRs 1,000M. OZL could clean this up with current cash reserves.
- Location South Australia, obvious synergies with PH and Big C
- Resource 170MT @0.7%CU and 0.2gt Au...this is likely to grow in a revised resource statement due in July
- A 10MTpa operation would fit in the lower end of their stated growth strategy.
- Good exploration potential, though they seem to be struggling to get access to certain sites.
- No major shareholders with a blocking stake

Disadvantages include:
- RXMs management is responsible for the Ballarat Gold debacle. Lihir Gold shareholders picked up the Tab.
- Project may have some environmental approval difficulties....first major mine in the area
- The project appears to have higher than average strip ratios for the moderate grades.

Should be an interesting period. Well done to OZL to hang onto the cash over the past 12 months.