BHP had the chance in the great demerger, 2 or 3 years ago, to pick up PH for a bargain - why didn't they exercise that option?
The current strategy for PH, read OZ, is a "Clayton's" strategy. It was Owen Hegarty's great dream that there is another PH out there "we just have to put down enough drill holes and we will find it". What interesting targets have been identified in that time?
Remember, also, that the PH pit has a life of 10 years and requires additional ore sources, yet to be identified, that will replace the current pit in - how long does it take to develop a new pit?. The underground will supplement the current operations but not replace them.
Is the current valuation of OZ the current cash flow plus the $1.5B in the bank its true value?
What real value has the new management added? The statement that "within 12 months we will have a new acquisition or the money will go back to the shareholders" seems to be forgotten or conveniently now set aside, to what value to the shareholder?
Is underwhelming a better description of 12 months performance?
OZL Price at posting:
$17.30 Sentiment: Hold Disclosure: Held
