what can oz minerals buy that is the question

Like to start a thread now that the merger is done that we all focus on the +ve's and stop the -ve's posts

Yes the share price has been trashed and that really unfortunate for OXR/ZFX shareholders, but now must look forward.

I do not believe OH would in his right mind to have expected the share price to fall by 35% from the date of the merger. Why would he want to destroy shareholder wealth when all he does done over past 10 years is try build it up.

So the focus is what can OZ minerals do with $1.2B of cash...soon to be $1.5B at EOY Dec 08.

They have (AM & OH) have stated they are clearly looking to buy something quickly.

So thinking they have stated they are interested in Ni, i looked at MRE, MCR, WSA last night

In my view i believe OZL should try and take out MRE, however this will darn hard with Glencore holding 53% of MRE shares, so the prem needed maybe too high.

WSA is still an explorer but with huge potential. Problem i see is that OZL needs Ni production fairly soon...not in 2010/2011. To take WSA out would need approx $2.17B (based on $13/share) For the amount of Ni WSA has (about same as AGM) is in my book makes it too costly.

So that leaves MCR...again good potential not as good as WSA, but is producing (14Mt of Ni) add this to 12Mt on Ni from AGM and you get 26Mt of Ni by 2010.

MCR has 202M shares on issue...i would think first pitch at $4 ($800M) might get it going, might have to raise to $4.40 to get it across the line. Wide open register...

If OZL gets MCR this would add by my numbers $0.035 to FY08 EPS and $0.045 to FY09 EPS...ramp up production and explorartion...and might get to sam level as MRE (at 34Mt)

Other things OZL could look at is Iron Ore but need something producing right now IMO.

So imo MGX would be the go, but the darn chinese are in there already. This would costs $3.2B approx...so OZL would need to gear up balance sheet to buy. Probably not the way to go right now.

Anyway i trust food for thought...Any comments good or bad go for it.

Cheers
Muzz