strategies, page-2

Good opening post Dasa, well done.

I think there could be a gap between expectations and reality for some HC posters. We often forget the time it takes to go from drilling to mining.

Accessing the Ankata deposit and getting to full mining rates is taking just shy of two years.

We know that C will take at least 6 years from drilling an inferred resource to construction and mining. That is a long time to wait and there are not many announcements that occur as OZL moves along the timeline.

We know that OZL is drilling out the Munda Zone, but the drilling will not be completed until next year some time.

During this time, the company has very little to report, it is just getting on with the job.

Owning mining shares is all about patience.

I am not aware of any other company on the ASX, other than SFR, that meet's OZL's investment criteria. There could be others around the world.

I agree that OZL is vulnerable at these prices from companies like Newcrest, but I am unaware of what strategies OZL could use to shore up it's position.

The fact that OZL increased it's holding in SFR sends a msg of where they see value.

So what would I like to see?

A growth profile something like this

T/o SFR with a cash & script offer - this increases production by 50% (min) by mid next year and still leaves our balance sheet in pristine condition.

Develop Munda quickly - it is mostly GOLD and, from my understanding, adding additional processing facilities at P Hill are relatively easy to build, as the "flagfall" infrastructure is already in place. I would hope that Munda could be producing by early 2014.

In parallel, C is progressing, along with resource definitions for below the open pit and the Kalaya zone.

One of the criticisms of OZL is that it does not have any growth options. I actually see them, but maybe OZL needs to do a better job of communicating that growth pipeline to the investment community. The issue is, once published, it is the measure that you are judged against and any slippage is regarded as a black mark. So having some "fat" in the plan would be good.

HT1