It is a speculative stock happyhunter. You are correct. However, a lot of the risk is starting to come out of the stock as it nears production status. There was actually more risk in the stock when it was 15cents rather than its current 37cents.
Anyhow, OXR is really a play on the copper price more than anything. There copper deposit is where the serious value is. A point to note is that with every 8cents/lb increase in the copper price above the 80cents/lb level, this increases OXR NPAT by 13 million dollars and increases their valuation by 10 cents.
The market for copper in that area is excellent with china and thailand being net importers of copper and the sepon project is close to a national highway so the market expects OXR to realise a premium price to the LME price because of possible percieved transport cost savings.
By contrast, if you look at the gold sensitivities, its no where near as good. So its definately a copper play and if gold keeps going higher, well that is all cream.
cya
skippa
OXR
oxiana limited
