re: *** brokers views on oxr*** Let me share some info on OXR...

re: *** brokers views on oxr*** Let me share some info on OXR from the view of a broker.

Strategic Direction
OXR's primary objective is to realise full value of the Sepon/Khanong Project in Laos for shareholders. Given the great potential size of the property, this will take some time. The Prominent Hill JV (OXR up to 65%) may yield further exploration success. The company will continue to operate existing interests in Cyprus and The Philippines until it is appropriate to sell or further develop.

Risk
Country risk is on the high side in that Laos is a small, developing ASEAN country with undeveloped infrastructure and mining industry. A socialist republic political system with 60% of the population practicing Buddhism, Laos is emerging quickly from two decades of recovery from the dark days of the 1970s. As a new producer facing the financing of a large (copper) project, finance risk in the near term will be considered high until the cash flow potential of the gold mine is established.

Primary Share Price Catalyst
The potential to add to reserves and resources is very high given the extensive areas of mineralisation on OXR's ground. The gold price will be a key earnings driver for this unhedged producer as it builds to +160koz gold output. Progress with the Copper Project will also be a positive factor. The discount of the rights issue may apply pressure to the share price in the near term.

Conculsion
OXR has achieved a solid stock price performance, with the ramp-up of the new Sepon gold project in Laos. The company has a number of options to drive growth. The company may appear relatively fully priced on valuation/PE multiples and subject to an element of sovereign risk. However, the rate of growth is appealing with further upside potential to unlock additional value in Laos and other company projects.

I hope this helps.
Ace..