why is ozl rising, page-6

all,
Thanks for the comments and feedback.

Alley,
I would be surprised if SFR can bring the project in for that price tag. Normally between Pre Feas and Feas, the price can grow by up to 50%. Also, normally financiers will not lend money until a bankable feasibility document is created.

When that happens the sp could decline. I noticed that the SFR shareprice did not jump up with the PFS release.

The other thing is that SFR production is 18 months away. A lot can happen in 18 months. Look at the options

Posco could sell their holding to OZL. (I believe this is OK - even though above 20%)
China could slow down to cool inflation, causing all commodities and sharemarkets to fall.
Europe could have a sovereign debt default where the bond holders lose out and credit dries up and banks are reluctant to lend.

Any one of these could be an opportunity for OZL to purchase SFR or gain leverage with SFR without paying over the top.

I am currently sitting in the patience camp. OZL only "needs" SFR if the P Hill exploration turns up nothing. IMO, I think TB is happy to wait wrt SFR and see what results he gets from the OZL drilling. Remember, a discovery near P Hill will put the sp up considerably, and then a script offer for SFR becomes potentially quite sp accretive.

That is how I see it potentially playing out.

HT1