entropy - Carapateena is a good asset indeed. It will come online some 8 years after the purchase with fast track expenditure instead of 10 years. If the exploration targets prove up then it could extend OZL resource life out beyond 2035.
In the meanwhile the several hundreds of millions of dollars sit in the bank since 2009 continuing to gather dust waiting to be invested in profitable ventures. Can you generate worthy profit with this cash before 2018? I reckon I could use it in my expanded portfolio.
a hypothetical:
OZ have said C will cost $2B to develop. If RXM was in a JV with OZL to develop hillside OZL (OZL could supply funding for 60% JV?) OZ would then have 2 mines operational from 2015 to 2030 (initially hillside and PH then hillside and C) and could employ the neglected and under-utilized capital sooner in what looks like a good scale and profitable venture if OZ predictions for Cu and Au are correct and Fe holds up. Hillside C1 is looking good at $1.20, size seems good and SP is deflated compared to historical prices - they need funding to get going. The question is would the profits from hillside and PH be sufficient to still fast track C?
I suspect if OZ dont move on it at the BFS somebody else will.
Maybe this quarterly is just a "poker face" move by OZ and they are still intending M&A. who knows.
OZL Price at posting:
$6.85 Sentiment: Buy Disclosure: Held
