"The Company’s strategy remains to add to its expansion through the acquisition of new copper assets where value can be identified. In the 2010 year, we have analysed many potential investment opportunities, but few have met our strict value criteria. We finalised a joint venture with IMX Resources, acquired a stake in Sandfire Resources and, since the balance date, announced an agreement to acquire the Carrapateena project in South Australia." (from 2010 Annual Report, Chairman's Report)
As to how equity accounting works at OZL:
"Associates are all entities over which the consolidated entity has significant influence, but not control, of the financial and operating policies. Significant influence is presumed to exist when the consolidated entity holds between twenty and fifty percent of the voting power of another entity." (from Note 1D of the 2010 Annual Report)
As to how Sandfire is classified on the OZL balance sheet:
The 2010 Annual Report (Note 11) has Sandfire as an investment (on the balance sheet). Note 10 (Equity Accounting) only has Toro Energy Limited.
The 2011 Annual Report will be out very soon, you can check Note 11 and Note 10 then to see if anything has changed during the year.
Cheers
OZL Price at posting:
$9.85 Sentiment: None Disclosure: Not Held
