Hi all,Ive been musing about the SP of OZL today. It got down to...

Hi all,

Ive been musing about the SP of OZL today. It got down to $1.46 which I think is unsustainably low.

My thinks goes along these lines.

At $1.46 whith a capital return of 12 cents this translates to $1.34 (expect a price drop when the capital return happens).

OZL is likely to be paying a dividend of 7c fully franked giving a franked return of >5%

OZL will be able to afford this level of dividend payout until copper drops below $2.50 (Ht might like to check). It would and should curtail other activities if need be to maintain this level of payout and it will have something like $750mill still in the bank post Big C buyout and post consolidation.

With Big C and other exploration the long term production of Copper is very good. At least 20 years

So I rate OZL a >5% fully franked return on investment which is virtually risk free.

Not to mention possible upsides in commodity prices, and further upside in development and discovery, leading to higher dividend payouts.

I believe OZL should be trading at least back in the %$1.65 - $1.75 belt at this point in time.

Ony my thinking, but I hope it promotes discussion.

Please don't rely on my thinking here and do your own research and make your own mind up. I am only a mug punter who continually gets this market wrong

Regards