As each day goes by the chances of OZ trading out of this seem to be improving. The refinancing was the biggest issue and due to the drastic fall in the base metals sector their was no way that mining of the metals would cover production costs and therefore one of the banks wanted their loan repaid. With the sale process being drawn out and the extensions the banks have allowed this has been working in favor of OZ.All except the one bank the other banks were willing to refinance for the two years. Zinc has hit $0.72 , Copper in demand at $2.18 ,Martabe has been sold , Prominent Hill in production and sales revenue being generated, Rising US $0.74 decreasing loan value ,Capital Expenditure under control , Some very valuable mines waiting to go back into production What we need now at OZ is a smart figures man is to piece all these things together . It is now possible to pay out the one bank if the other banks agree to refinancing at a far more attractive commercial rate. The banks could take a lien over production and would see a reduction in their loans at the end of each quarters sales proceeds.The other banks have stuck it out this far and if the real value of the entire entity of OZ is more like $5 billion to $1 billion debts then they should stick with OZ just a little longer. It is my opinion only but it seems logical that this should happen.
OZL Price at posting:
$7.50 Sentiment: Hold Disclosure: Held
