Sure resources companies are getting hammered for various reasons. Find me other top 100-200 miners that are hitting 2 year lows? EQN is up 100% from those levels, PNA up 200%. The only ones hitting 2 year lows are KZL, PEM, CBH funny that eh?
Copper is still where it was 2 years ago, around 3.50-3.60 Zinc is back to levels of January 2006. Interesting that when zinc dropped from $1.30 in March at the time of the deal to $1 in May, the management didn't recogniate. They still watched and fiddled while zinc dropped another 20% until ZFX voted. It was great how we Oxiana holders got to vote on that even staring in the face of a 50% drop in zinc prices, while copper was still holding up and pushing new highs.
Funny how OZL is also back $1.90 where is was when the zinc price was in January 2006 yet copper is 75% higher from that point.
With current prices copper production will be 50-55% of revenues, and probably 75-80% of profits.
Incidently Zinifex was $7.25 at that point which implies a $2.20 price based on the merger ratio.
Where is the immediate benefit for Oxiana holders? To be diluted by 50%, to have share price halved? To get no say in what our destiny lay. Maybe we would have got taken over at $4-5 as OXR alone, now as a combined group we hope for a $3 bid.
Some people on the board need to go back to school and learn some maths.
OZL Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
