merged oxiana zinifex is bigger target, page-13

I was just doing some research this morning and came accross some data in "Research Insight" from Comsec. It states:

"Zinc Price Profile Upgrade?

The ILZSG released data revising down their estimate of Chinese Zinc mine production in 2007 by 300kt. The ILZSG information is consistent with information from metal/concentrate traders; namely that Chinese supply is much tighter than analysts have projected.

The fall in chinese mine production is about the same as the surplus projected for the Zinc market for 2008 and 2009. If the surplus does not eventuate, then zinc prices will be much firmer."

Now there are some ifs and buts in that analysis, but the data is interesting. Some OXR shareholders have concerns that after the merger, the new company will have such a big exposure to Zinc, and I agree. But if there is even a small tweek on the upside to Zinc, think of the bottom line result. The extra cash allows growth in other commodities by aquisition or funding new projects, (Nickel, Copper, iron ore, coal) while still having that Zinc exposure.

I am a true believer in this merger.