Aussie Joe Firstly one of the reasons the bhp deal fell over was the realisation that selling off assets (ie to clear EU regs to allow rio takeover)was not going to get full value for BHP assets. BHP know that so why would they pay full price for any OZL asset. I am no expert on OZL but surely BHP could look elsewhere to find distressed assets at heavy discounts. What is so compelling about PH for BHP?
Secondly waiting for the commodity price cycle to turn to "replace PH" seems flawed in logic. if PH is so easily replaced and at a price point that is good value, surely then BHP would look at that asset b4 PH and surely that asset is better buying now that after the turn.
Thirdly, what are the economics of PH? Is it economically viable at current prices? or is it another century that was meant to be such a cash cow but is no such thing at todays prices?
OZL Price at posting:
$5.25 Sentiment: Hold Disclosure: Held
