theory...

I was just thinking if worst comes to worst and we do drop to $1, maybe that will be enough for the company to buy back shares.

At $1 they could buy back virtually all the scrip issued to Zinifex holders for around $1.5-$2billion.

Now the cost to OXR in dollar terms would be effectively $500million to get a hold of Century, Rosebery, Avebury + the exploration assets.
There's no way OXR could have bought those assets for such a price given that ZFX had the $1.5billion in cash.

Now if we get to $1 that will be the deal of the century because OXR will have gained all that for only $500million.

Heck even at $1.50, that would be about buying ZFX for $1-$1.5 billion or so.

Forgetting about the share price destruction for Oxiana holders but if it were to play out we'd be back to about 1.5billion shares with the same assets - minus the $1.5billion in cash.
If the forecasts are right and the company achieves the $1billion profit in 2010, then that on a 10x earnings would imply a $6.66 if all those shares are bought back.

I guess the quicker it drops to $1 the better for OXR holders in the long run.

Maybe Owen did a double cross on Michelmore?



OH GAWD....I must be delirious and hysterical

:D :D :D