In my mind it's merely a charade. 1. When the GS valuation was...

In my mind it's merely a charade.

1. When the GS valuation was made on May 5, the AUS$ was worth 0.70c to 1US$. Today it's hovering around AUS$80c.

2. The new MM upgrade offer of US$1.386 bil only just fit's within GS's valuation of US$1.385 to US$1.600 bil, (obviously the Chinese can read english too! and make a shrewd alteration to the offer to fit the valuation.

3. The offer still amounts to AUS$1.726 bil with outstanding debt of between AUS$1.06 & AUS$1.3 bil, that still leaves Oz Min with the same cash in hand when the deal was first made in Feb 09.

4. Management have not considered negotiating separate mines with the Chinese, but rather making deals out of desparation and an all inclusive package that includes a AUS$800 cash injection into the company over 2008, ("At the same time, OZ Minerals was progressing a number of major capital expenditure projects, including the construction and commissioning of Prominent Hill, the
construction of Martabe, a capacity expansion project at Sepon, a major waste movement program at
Century and a significant capital expenditure program at Golden Grove." extracted from the GS report.)

5. Valuations need to take into consideration potential profitability, in essence seeing perceived value & the most cost effective way of extracting & selling that valuable commodity. This management have too many balls in the air and lack the expertise to juggle them with the greatest efficacy. This level of expertise comes from people who manage budgets & expenditure well. A management issue exists that is the real underlying cause of this sell off of potentially profitable commodities.

6. The Chinese are still getting a better deal then they deserve as far as I am concerned & they know it will realise great future value for them as they set about building infrastructure within the asian economies. That potential benefit of value cannot be measured by accountants who lack the foresight of including 'potential profitability' this company is losing by making the Chinese deal. (includes rising commodity prices, momentum in the asian economies, unrealised mineral extensions within the mines being sold.)

7. Imho I would still be looking at alternative proposal deals that the management should rightfully be proactive in persuing, that's what they get paid to do. Not sit & wait for proposals to come to them, (especially when the current proposals are being made by vultures.)

This is mere shrewd Chinese negotiation & an inflated response by Oz Minerals management to get the deal "over the line".

Vote as you see fit.