OXR oxiana limited

zinifex profitabilityat these zinc prices

  1. 36 Posts.
    Does anybody know the profit (or loss) & op cash flow levels Zinifex would be at if zinc stays at these levels.

    I will do some analysis over the weekend however would appreciate if someone has the numbers.

    When the deal was announced they said the group would have opertaing cashflow of $1.3Billion a year when PH comes on line.

    At a current $6B market cap less say $1B in net cash OXR is valued at $5B which equates to 3.8 years cashflow.

    This is incredibly cheap. Takeover would normally be at 8 x plus up to 10 -12 times. ie minumin double.

    I am trying to calculate what the net cashflow would be now at current zinc prices. Perhaps $200M less? Even so still incredibly cheap.



 
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