Some excerpts from the following article. Oz less interested in SFR due to lack of success in growing the DeGrussa resource. Reading DML’s new PL’s ann. this morning, you’d have to assume that Oz are paying close attention. Oz willing to use a “large proportion” of it’s $886m for acquisition.
Fully diluted based on existing structure, we’ll become a $1b co, at $2.25 a share.
Hopefully we become too big for Oz to aquire, and OZ are chasing 2015/16 production, mind you it’s not until then that we’ll be really smashing out some solid tonnage. Anyone heard anything more about Oz’s interest in DML?
OZ MINERALS is eager to spend its near billion-dollar war chest on an acquisition sooner rather than later, but has dampened expectations that it is about to swoop on market darling Sandfire Resources.
The company has been on the acquisition trail for much of the past two years, and chief executive Terry Burgess used yesterday's profit results to declare that a big purchase was ''certainly my main focus for 2012''.
Mr Burgess has $886 million ready to spend, and that war chest continues to grow with solid full-year profits, such as yesterday's result of $274 million.
Revenue and production from the company's flagship Prominent Hill copper and goldmine were only marginally lower than in 2010 and, with the mine entering its last five to eight years of operation, Mr Burgess said he was pleased with the consistently strong performance.
Mr Burgess said a large proportion of cash reserves would be spent on an acquisition and he was particularly keen to add a project that would be producing by about 2015 or 2016.
OZ Minerals already owns 19 per cent of fellow copper play Sandfire and has long been expected to mount a full takeover.
But Mr Burgess yesterday sought to cool those expectations, saying exploration around Sandfire's flagship DeGrussa deposit had delivered little in recent times and a move on Sandfire was not going to give OZ Minerals ''that huge upside that we might be looking for in an acquisition''.
DML Price at posting:
$1.60 Sentiment: Buy Disclosure: Held
