Small extract from Citigroup BUY recommendation on OXiana or the...

Small extract from Citigroup BUY recommendation on OXiana or the new OZ Minerals.. They have listed 3 potential takeover targets, PNA is one.

We expect any acquisition to be funded from a combination of cash and debt
as the collapse in the share price since the merger means that scrip is not a
likely option. Assuming a leveraging up of the balance sheet, we anticipate that
the company could undertake acquisitions of A$3-4b.
When we look at the potential acquisition targets in Australia, there is not much
that is likely to be attractive in this range, but potential targets could include:

 Equinox (EQN.TO; C$3.71; Not Rated) – an emerging copper company with
a A$2.2b market and its key ~170ktpa mine in Zambia. Key barrier would be
First Quantum’s (FQM.L; £33.83; 1M) 17% shareholding.

 Panaust Ltd (PNA.AX; A$0.83; Not Rated) – recently developed a 60kt
copper and 60koz gold project in OZ Minerals’ backyard of Laos. Market cap
is A$1.3b.

 Panoramic Resources (PAN.AX; A$2.40; Not Rated) – formerly Sally Mallay
and producing ~15kt of nickel with a market cap of A$460m.