Even with equity writedowns I doubt the equity book value has fallen by half...if it has than gearing is still only 35% or so (up from a meagre 13%) and the company gains funding albeit on tougher terms.
and there is still the real chance of a takeover at these prices by BHP.
and by your logic RIO with $42B in debt is in much bigger problems.
PH is the biggest and best copper/gold deposit in the country and produces a ton of cash in 2009 and 2010 so admin risk is low. Ore is is sitting awaiting milling.
Costs of running PH next year are dropping too.
OZL's next announcement will be positive. All the banks agreed except for a mystery caveat that we believe is Century related.
My experience says that a positive refinance will spark OZL into a short squeeze tuesday as M&A premium will enter the stock also...hence a short sqeeze.
Well see...but if the news is positive ill sure be buying more.
OZL Price at posting:
$5.50 Sentiment: Buy Disclosure: Held
