OZL were under enormous pressure to buy SFR with Prominent Hill declining copper grades.Interestingly this is about to change with grades at Ankata now 2.3 to 2.8% copper also adding 25,000 tons copper and 12,000 ounces gold. There is no chance of a T/A as we all know that prominent hill is too close to our Defence bases for the GOVT to give approval to off shore investor However the $650M cash plus the $250 M in stock.Makes OZL essentially bullet proof. OZL shareprice has been depressed by shorters and the exit of a large shareholder which managed to sell 5% of the company in the low $6. OZL shareprice has been as high as $18.80 and essentially is lost a 3rd of her market capital and still has $650M Cash $250 M Stock on hand Equity accounted SFR $250M which accounts for $1150 out of $2000 mks cap. With QE3 and the 40 Billion per week support the Copper price will bounce.
OZL Price at posting:
$7.10 Sentiment: Hold Disclosure: Held
