Grant Samuel made the $4 call earlier in the year.
Metals prices have changed considerably since then
I had a look an old Huntley Report on oxiana for 2006 the other day and noticed that the assumptions analysts were using to value companies were way lower than they are now
eg "Our $2.55 per share valuation assumes US$1.75/lb long term copper, US$0.70/lb zinc, US$500/oz gold, an A$/US$ exchange rate of 0.76 and a 10% discount rate
then you look at the assumptions used in Huntley's recent valuation zinc = $1 copper=$2.50 gold= $750
I think the valuations changed because of boom conditions
grant samuel might have overestimated their assumptions for metals
But could be wrong.
the world economy might be able to get back on track and the resource boom will continue on into the future.
OZL Price at posting:
$13.95 Sentiment: None Disclosure: Held
