Hi dang,OK I read your earlier post, I know TB buys OZ shares...

Hi dang,

OK I read your earlier post,

I know TB buys OZ shares every month and has been given/earnt over a million performance rights (with no excise price) since joining OZ, so he is doing alright, and yes I agree it is good that he has incentive to perform.



'He has made it plain he will not spend shareholders'

funds just for the sake of expanding the company.

If he believes a deal won't increase shareholders' wealth

he won't do the deal.


Nothing wrong with that philosophy either I agree,


'why take unnecessary risks with a company that

sorely needed to rebuild it's reputation'



The problem is everything has a level of risk, doing nothing has risk

Doing nothing can sometimes be just as risky as doing something, we could have just left our $$$ in US currency, which is what we basically did, doing nothing in that case would have lost us hundreds of millions of AU dollars.


Having 1.5bill in the bank also exposes us to other risks like bank failures, inflation, currency risks or being seen as a easier target for legal actions.



OZ's reputation was more to do with who was running the company than the company itself, a lot of the stigma of the old OZ is already out the door.


MS upping OZL rating is more to do with the copper price, which we have no control over, yes OZ is doing OK, mainly because of the copper price, OZs SP performance is not even really keeping up with the increase of the copper price.



I have never said OZ should just buy something for the sake of buying it, in fact quite the opposite

I posted this 18 months ago when OZL SP was 87cents

'We now either need to be conservative and buyback/capital return with most of the dollars, or do what the OX did, and take some risk (Laos), and build the company again, as a growth stock'

We needed a plan, a path, a vision, I have not seen this so far, we had an opportunity to rebuild OZ with good value deals or use the dollars to reduce our shares on issue by over a billion shares, either of these options were better than doing nothing, doing nothing has cost us money.


I am not blaming TB for this, after all BC was still there until may last year, I know TB was thrown in at the deep end, but unfortunately we needed him to be a strong swimmer from day one.





Hi Dasa, you said 'I think the one thing TB has done is to be cautious, and in doing so he is rebuilding reputation. I think they could start to be a bit more agressive, but OZL has been burnt before when it had a lot of cash and made bad buys

Mate, We wern't just burnt, we were nearly cremated!

I think the time to be agressive has passed, I would rather OZ be conservative at this point of time, share buyback or capital return would be my preference at present.


cheers grant


the above is opinion only and written without prejudice