OZL (ASX) pressure is increasing

This is an article from The Australian newspaper.

Here is the link

http://www.theaustralian.com.au/business/mining-energy/pressure-mounts-on-oz-minerals-to-buy-up-big/story-e6frg9df-1226543367470

Here is the "unlocked" section of the article

Pressure mounts on OZ Minerals to buy up big
BY: BARRY FITZGERALD From: The Australian December 26, 2012 12:00AM

ANOTHER year rolls by and still no big-bang acquisition from Melbourne-based OZ Minerals. But there are no apologies from the company's chief executive, Terry Burgess, for what has become a drawn-out process.

"We are focusing on projects that have the potential to add meaningful growth at a reasonable price and risk. This is essential because unless we can see value-add for our shareholders, we are not going to transact," Mr Burgess told The Australian.

It is becoming increasingly obvious that one mine with limited mine life and no significant revenue growth for OZL is depressing the share price.

While doing near mine exploration is important and should not stop, IMO, after this length of time with not finding anything of note, the M&A part of the strategy needs to ramp up to provide surety of earnings into the future. (C progress should continue but this is a 2018 to 2020 mine start and does not plug the potential hole in earnings drop.)

A JV or t/o of RXM is, again, IMO, the best option for OZL. There are synergies to be gained by a t/o or JV wrt equipment, admin and overheads, it is in the same state as C and P Hill, so the bureaucracy and Govt is understood, C1 costs are comparable to P Hill, so it is not a high cost mine. It is in the Gawler Craton, so the geology is well understood (as well as Geology is ever understood!) The project is at feasibility and OZL bal sheet can provide the cash to speed up the mine development. It can also provide earnings surety going into the future.

If OZL does not think that Hillside is the best option for shareholders, that is fine, but doing nothing is, IMO, no longer an option. IF OZL does not go after Hillside, they need to progress some other mine. But either way, it needs to be progressed soon.

HT1