Agree that SFR was a strategic failure - OZL should have announced a 19.9% stake and a simultaneous offer for the rest of the outstanding shares, and SFR would have been theirs, as other parties wouldn't have come in with OZL holding 19.9% (and they could have used a cash/scrip mixture).But that deal appears closed, as SFR brought the Koreans in to block OZL.
But it is easy to criticize reviewing the past. Successful M&S is not simple (acquiring an asset where you see more value than the current owner/vendor) and particularly hard in the mining industry (as the current incumbents demonstrate).
I think the pressure will start to be applied to the Board to perform - the strategic requirement is quite clear.
As I said, I think the real failure is to build a network of JVs with the juniors (which could have been done a little cost to OZL) to ensure exposure to the next generation of discoveries in conjunction with a more aggressive M&A strategy.
OZL have painted themselves into a corner with their public announcements of M&A strategy (copper, has to above 50ktpa, in certain countries etc.) - they should approach from a return perspective rather than a scale perspective (see recent Anglo American presentation - slide 28 for an example).
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