OZL Capex

OZL faces a very big capex spend. The $750m cash pile will vanish even though it enjoys good cashflows from Prominent Hill and will likely take on debt - which it can afford and sustain.

It has committed to ~$950m on Carrapeteena over the next two years.

If the bid for AVB succeeds, it will pay out $225m, opening a suite of possibilities for mine development in Brazil, many times larger than the cashflows from high-grade short-life Antas.

Further, AC hinted at additional step-out acquisitions in Carajas province.

OZL will review of all options in the combined portfolio - and there will be many highly attractive alternative uses for capital in both Australia and Brazil.

Few businesses have the luxury of too many profitable things to do. Well done AC & team.

Ash