As an outsider to the world of funds management, I'm amazed at how easily those who invest large sums of money seem to get sucked in by every two-bit rumour that does the rounds.
It's too easy to start them and the motivations are obvious, yet they seem to gain traction for a few days and then peter into nothing.
I'm all for the merger with OXR - it looks a good thing for both sets of shareholders. If it doesn't come though ZFX has got the cash, operating mines and negligible sovereign risk required to diversify.
I think this 'short mine life - just a cashbox' argument is exaggerated and, if it were true, easily fixed - go to the RIO Alcan garage sale and pick up one of their non-core assets, preferably in Australia or a low-risk country.
Anyway, if we're going to start takeover rumours, I'd have thought the most likely would be Xstrata or China to pick up the combined OXR-ZFX entity.
ZFX
zinifex limited
