OXR - Oxiana Limited

[laurie]

yep but then again it's not up to us

cheers laurie

 

[ctp6360]

If they pay me $5 for my OXR shares I'm going to buy a Yacht and hold a party for everyone on this forum with free drinks and bitches (and male strippers for Julia and the other ladies!)

 

[nizar]

If they pay me $5 for my OXR shares I'm going to buy a Yacht and hold a party for everyone on this forum with free drinks and bitches (and male strippers for Julia and the other ladies!)

Sounds good...

 

[redandgreen]

Agree then I thought if that's the case what are they waiting for! so redandgreen what price has it to reach before they are safe from Xstrata $4/$5 :

cheers laurie

I reckon $5.75 sounds fair, whaddya reckon?

 

[powwww]

http://www.oxiana.com.au/_data/docs/announcements/2006/00617432.pdf

Oxiana to Sell its Philippines Interest to Royalco

What do people think about this news? Any thoughts as to how this may affect the stock price next week...

Also, does anybody here think that the IPO would be a good buy?

1) Amazing and positive, especially if you're lucky enough to get your hands on some of the Royalco IPO. 2) positive, keep in mind Oxiana will retain a 51% buyback option for each resource discovered (upon payment of 8mill to royalco and free carrying them to the BFS) AND they own 17.7% of ROYALCO. AND if you look at the tenements you'd be crazy not to think this wasn't highly likely to occur...It's good to see RIO and OXIANA working together on this one.

Look, I can see your concern, they letting go of some highly prospective tenements and some success seems likely imo (read pages 9-13 of the prospective for a brief outline). Oxiana has returned some promising results from Gambang and Pao/Yabbe tenements so it could be argued that it is a negative to OXR letting these go. However Royalco has retained the OXR PI team as well as appointed Peter Lester, Executive General Manager Corporate Development for Oxiana as a Director of Royalco. Therefore the OX isn't letting go by a long shot!!!

IMO the OX have chosen an amazing partner- the key here is the portfolio of royalties which will provide say $4million income to Royalco at current gold prices (see the prospectus for more info). Therefore with 12million raised from only 24 million shares available i'd think that cap raising wouldn't be happening for quite some time unless they get a huge discovery! This removes one major risk that most other exploration companies face...So with a spend of 6.6million AUD on drilling over 2 years and royalties around $8million over the same period this looks like a unique opportunity for oxiana who already had a lot on their plate without managing the OPI exploration. Best thing is at the issue price of 50cents the market cap is only $28 million you would have to think with steady market & commodities conditions the OXR will be gaining some big $$ upon openning. 3) Unbelievable buy if you can get your hands on it however from the quality of the float, which is sure to attract plenty of insto sized investors, I wouldn't be surprised if it closed very early...

For more info see the article by Barry Fitzgerald in "The Age" May 29 2006 @ http://www.theage.com.au/news/barry...n-royalco-float/2006/05/28/1148754873240.html

Regards for now,

 

[ALFguy]

From Miningnews.net

OXIANA is not frightened of a challenge or risk and is on the hunt for joint ventures, farm-in opportunities and acquisitions as it continues down the path to becoming Australia's next major mining house, according to managing director Owen Hegarty.

Hegarty threw the invitation to the crowd assembled at the Burswood Convention Centre in Perth as he opened the second annual Association of Mining and Exploration Companies (AMEC) National Congress when he delivered the Sir Arvi Parbo Oration.

After paying homage to Parbo and his contribution to the industry, Hegarty turned his attentions to the old chestnut that is China, describing the rise of the superpower as "an unparalleled opportunity for (the Australian mining) industry … to participate much more".

"China needs resources from us, but also from within," he said.

"It needs our technology, our technical assistance, our know-how and our capital across the board, from exploration through to project development.

"China remains un[explored] and under-explored and the best expertise in the world is right here."

Hegarty was more bullish than ox-like as he pontificated on the future of the three commodities that have made Oxiana one of the highest returning stocks on the ASX over the past five years – gold, copper and zinc.

He said the demand fundamentals of all three metals painted a rosy future for producers, with costs rising and falling grades making it more difficult for new entrants to increase supply.

Hegarty said getting the right people was the key to Oxiana's success. The right people are those who conform to the company's four key values of respect, action, performance and openness, he said.

"There are two types of people in the world – those who do the work and those who take the credit for it," Heggarty said.

"You're better off being in the first category, because there are less of them."

 

[nizar]

the full presentation

http://www.oxiana.com.au/_data/docs/... oration.pdf

 

[Sean K]

OXR must be looking tasty to some of you Ox, um, bulls.

I've seen $3.85 price targets on this. Currently $2.60. That's gotta make it pretty cheap now?

I think it's time to wash the week away....... :drink:

 

[Ants]

Close to 6 million bucks has just been placed for OXR after close.

 

[powwww]

from today's age -- http://www.theage.com.au/news/busin...loodbath/2006/06/11/1149964410615.html?page=2
---
FROM the update file comes news that in the midst of last week's great resources sell-off, Melbourne-based Royalco Resources comfortably raised $12 million for the twin pursuits of royalty streams and the game-changing potential of exploration in the Philippines.

Garimpeiro wrote about the float a fortnight ago and it seems that the combination of ongoing royalty streams from a portfolio of 10 projects and the Philippines exploration potential was more than enough to quell investor fears brought on by last week's rout in resource stocks.

The offer has been closed heavily oversubscribed, with the invitation to Oxiana's 28,000 shareholders to subscribe creating plenty of traffic.

Oxiana itself ends up with 17.7 per cent of the stock on debut, courtesy of the Filipino properties injected into Royalco.

Demand was sufficiently strong for Royalco to fill the $12 million raising without having to print a prospectus, although some will be printed for those subscribers who like "hard" copies for their files.

That Royalco got away ahead of the limited edition of hard copies being printed was due to the ability nowadays to subscribe via the internet ”” after reading the online prospectus, of course. The nation's forests can breathe easier, given it's a trend that can be expected to become the norm.

 

[michael_selway]

from today's age -- http://www.theage.com.au/news/busin...loodbath/2006/06/11/1149964410615.html?page=2
---
FROM the update file comes news that in the midst of last week's great resources sell-off, Melbourne-based Royalco Resources comfortably raised $12 million for the twin pursuits of royalty streams and the game-changing potential of exploration in the Philippines.

Garimpeiro wrote about the float a fortnight ago and it seems that the combination of ongoing royalty streams from a portfolio of 10 projects and the Philippines exploration potential was more than enough to quell investor fears brought on by last week's rout in resource stocks.

The offer has been closed heavily oversubscribed, with the invitation to Oxiana's 28,000 shareholders to subscribe creating plenty of traffic.

Oxiana itself ends up with 17.7 per cent of the stock on debut, courtesy of the Filipino properties injected into Royalco.

Demand was sufficiently strong for Royalco to fill the $12 million raising without having to print a prospectus, although some will be printed for those subscribers who like "hard" copies for their files.

That Royalco got away ahead of the limited edition of hard copies being printed was due to the ability nowadays to subscribe via the internet ”” after reading the online prospectus, of course. The nation's forests can breathe easier, given it's a trend that can be expected to become the norm.

The real scandal at Oxiana

Stephen Mayne

Stephen Mayne, small Oxiana shareholder, says the miner should just come clean

Date: 22 June 2006

The real scandal at Oxiana
Top 20 Australian business figures
The Myer sale's shrinking profits
Morgan Stanley's bearish take on ASX
Socceroos' win boosts a lot of bottom lines
James Strong should disown the pokies
A vintage year for climate change
Preparing for an ABC Learning showdown
Unitab shareholders: ditch Tattersall's
Rio Tinto just 15% Australian owned
Macquarie Communications -- full debate
more...
After copping the second biggest protest vote against its remuneration report over the past year, booming miner Oxiana Resources has finally come out and done this mea culpa two months after the AGM took place.

However, chairman Barry Cusack and CEO Owen Hegarty have focused on issues which were not the point of the protest, and both Andrew Trounson in The Australian and Michael Pascoe in Crikey yesterday have missed the point. The issue had nothing to do with option valuations and the involvement of non-executive directors in incentive schemes.

The scandal involved changing the performance period on Hegarty's options. Hegarty was issued four million options to buy shares at $1.20 apiece at the 2004 AGM, but the notice of meeting only stated that "the options will vest on 1 June 2006, subject to the satisfaction of performance hurdles".

The subsequent 2004 annual report, released in March 2005, clarified that the hurdles were as follows:

50% will vest on 1 June 2006 if the total shareholder return of Oxiana for the year ended June 30, 2005 exceeds the median of the total shareholder return of competitor companies.
a further 50% will vest on 1 June 2006 if the total shareholder return of Oxiana for the year ended 30 June 2005 is in the top quartile of the total shareholder return of competitor companies.
Fast forward to the 2005 annual report and suddenly we're told the hurdles are as follows for these same 4 million options:

50% will vest on 1 June 2006 if the total shareholder return of Oxiana for the two years ended 31 December 2005 exceeds the median of the total shareholder return of comparator companies;
a further 50% will vest on 1 June 2006 if the total shareholder return of Oxiana for the two years ended 31 December 2005 is in the top quartile of the total shareholder return of comparator companies.
Oxiana has gone into orbit over the past year but, sadly for Hegarty, it under-performed in the broader market and its comparator companies over the 2004-05 financial year. Therefore, the four million options should have lapsed. Lo and behold, the 2005 annual report changed the hurdle time frame to two years, so next week Hegarty will be able to write out a cheque for $4.8 million to buy stock worth $11.84 million based on this morning's share price of $2.96.

That's a paper profit of $7 million for Hegarty at the expense of all other shareholders who will be diluted. Why the hell can't the company just confess that this is the issue rather than putting out complete smokescreens?

http://www.crikey.com.au/articles/2006/06/22-1543-1472.html

 

[nizar]

http://www.eurekareport.com.au/iis/i...8?opendocument

 

[crayfish]

http://www.eurekareport.com.au/iis/i...8?opendocument

Http Status Code: 404

Reason: File not found or unable to read file

...

 

[LPA]

well the Prominent Hill news has hit NineMSN.....watch the fireworks

 

[michael_selway]

well the Prominent Hill news has hit NineMSN.....watch the fireworks

Ambitious Oxiana
By Robert Gottliebsen

PORTFOLIO POINT: Oxiana’s Owen Hegarty believes underlying commodity shortages remain, despite the economic slowdown ”” and consequent reduced demand ”” being imposed by the world’s central banks.

The latest commodity price and sharemarket falls do not alter the long-term strategy of Oxiana chief executive Owen Hegarty. Like most in the resources industry, he believes there is a long-term underlying shortage of metals such as copper and zinc, which will keep prices at very profitable levels for low-cost producers like Oxiana.

As you will hear in today’s interview, Oxiana is looking to effectively double production between now and 2009.

This interview took place just prior to last week’s crunch, and last Friday's relief rally.

Nevertheless, we should acknowledge that just as Australia was the main beneficiary from the global excesses in market prices, it will also be the one that suffers most from the slowdown now being imposed by the world’s central banks.

Although most of the focus has been on US inflation and interest rates, many countries have lifted rates including Europe, Korea, Turkey, South Africa, Iceland and Australia.

The world has to hope that central banks in Europe, the US and elsewhere don’t overplay their hand and convert a slowdown into a recession.

The recent bounce on Wall Street indicates the markets are confident this won’t happen. But had central banks not taken action to curb US consumers and world activity, there was real danger of a catastrophe.

The commodity price boom was fuelled by combination of acute shortages and hedge fund buying. A slowdown will ease demand, but the recent price falls were multiplied by the hedge funds’ panic selling. Underneath those fluctuations are long-term continuing shortages of copper, zinc and iron ore, and that will not change unless there is a world recession.

Once the hedge funds start speculating in other areas to recoup their losses the commodity market will stabilise.

No one can ever pick when the market will bottom but if Owen Hegarty is right then long-term resource buyers may have a chance to invest at good prices over coming months. But don’t be surprised if there are further falls along with bounces such as the recent Wall Street jump. I don’t expect an immediate return to boom conditions on the equity market; once a market turns, and central banks are aiming to slow, the game usually changes. But there is an opportunity for those seeking long-term value. In that context you must evaluate Owen Hegarty’s plans, which he sets out very well in the interview.


The interview

Robert Gottliebsen: You want to convert Oxiana into one of Australia’s top 50 companies. How will you do it?

Owen Hegarty: Over the next several years we’ve got a number of growth opportunities that we’re pursuing. We have a very strong exploration focus in Asia and Australia. We believe we know the [rocks] and the people and how to do business there very well. We’ve got a number of growth projects. We’re looking to expand our Sepon copper and gold operations. We’re looking to bring on Prominent Hill. That will be the world’s next most significant copper/gold project and we’ve got a number of other incremental expansions. So that’s how we’re looking to grow over the next few years.

How much are you going to spend on these projects?

We’ve mentioned that Prominent Hill is a multi-hundred-million-dollar investment. Equally, at Sepon those expansions won’t be vastly different from that and the incremental expansions, of course, are somewhat less, so you would expect that a capital expenditure of round about the billion dollars over the next few years.

Where will you get that sort of money?

We’re in the fortunate position at the moment, a good strong balance sheet at this time with cash ”” plenty of cash in the bank; and also the cash flow that’s coming at us over these next few years is very strong and the projects that we have are eminently bankable and gearable if we need to increase our debt levels. So eminently financeable within our existing resource base plus some increments, perhaps, from the banks.

By 2009, what will be your production at Oxiana?

For 2009 we’re targeting around about the 400,000 tonnes per annum of base metals. That’s copper and zinc and about 400,000 ounces per annum of gold.

Are you looking for acquisitions?

Yes, we’re always on the lookout for sensible acquisitions and adjuncts to our business, whether that be some of the exploration plays or a major merger or acquisition; so always on the lookout there. As I say to people, we haven’t seen anything worth leaving home for just yet but we’re always looking and I can say just on that, that in terms of acquisitions what we’re looking for of course are those things that we would be comfortable with, those acquisitions that we could actually make a difference to and make a difference to us. So they’re the sort of criteria.

Based on projected profits by the analysts, your price/earnings ratio for 2006 is less than 10. Are you vulnerable to takeover?

Well we think that price/earnings ratio projection is, yes, at less than 10. We’re serially undervalued there by the market and of course we’re vulnerable, which is why we’re going very hard at the ball to continue to grow the business, to continue to perform to get that price up because the best defence against a takeover is increasing your share price.

Looking around the world, companies like Xstrata are trawling the resources sector looking for takeovers. Can you really remain independent?

Companies such as that and other larger or medium scale resource companies are always looking for acquisitions and they know that they have to make acquisitions to continue to grow. It is a resource-hungry world and it looks as if it’s going to stay that way for the next … in some cases people are talking about decades. Therefore, they will continue to look at that so we are … you’d have to say … we are vulnerable but as I say the best defence against that is to continue to grow the business. We believe that we can remain independent. Our target is to become Australia’s next major mining house and there’s a gap there at the moment to do that and we are going for that gap.

Metal prices are high. Why don’t you sell forward your future production?

Look we think hedging is … the best hedge is operate very low-cost mines ”” copper and gold ”” and we are blessed with some wonderful assets up there at Sepon and at Prominent Hill and at Golden Grove, and therefore they will be low-cost producers. We don’t see any need therefore to hedge, particularly in an environment that we see is going to be undersupplied in terms of copper and zinc and other base and precious metals for the foreseeable future. So strong demand, buoyant prices, buoyant markets and therefore not necessary for us to hedge anything forward.

So what do you think the gold, copper and zinc prices will be by 2010?

Well we’re not really into making predictions, but you’d have to say that most commentators out there are talking about, say around about the $1000 mark for gold. They’re talking similar prices for copper that we have at the moment and maybe a little bit on the less side for zinc, but one thing is for sure: we believe that the market’s going to remain strong and you’ll have good solid prices there for our products.

If the world had a downturn between now and 2010 would you be vulnerable?

We don’t think we’d be exposed. We’ve got a very strong balance sheet. We’ve got very good performing operations and we’re prudent financially and therefore anything that we undertake we ensure we have the resources ”” the human resources as well as the financial resources to complete the job.

Australia has had many miners in your position: Western Mining, MIM, Normandy, North … Are you likely to go the same way?

We’re a public company and therefore always exposed to the market but the most important thing that we are doing: we have a pipeline of growth projects and we’re pursuing them with great vigour. We understand that, yes, those companies were taken out before their time, if you like. We’ve got to make sure that that doesn’t happen to us and we have to continue to grow the company and pursue those opportunities with the usual messianic zeal.

Robert Gottliebsen is a national business commentator with The Australian.

http://www.eurekareport.com.au/iis/iis.nsf/pages/511BF9F1C009F4A6CA2571920001545E/$file/060610%20Owen%20Hegarty%20RG.wmv

thx

MS

 

[jovialTrader]

Due to the unrest and tensions in the Middle East, the price of gold has been climbing north...But any ideas, why the gold stocks are going south?? (particularly with OXR been going down quite a bit for the past 2 days...)?

Hope members here can shed some lights...as with the latest OXR announcement and the climbing POG, I would have expected OXR to go up as well...weirdd...

JT

 

[laurie]

Same with oil the market confuses me most of the time

cheers laurie

 

[stockmaster]

Due to the unrest and tensions in the Middle East, the price of gold has been climbing north...But any ideas, why the gold stocks are going south?? (particularly with OXR been going down quite a bit for the past 2 days...)?

Hope members here can shed some lights...as with the latest OXR announcement and the climbing POG, I would have expected OXR to go up as well...weirdd...

JT

I believe the reason why OXR went down is because the market is moving in the south. I believe this time the market force has surpassed the rise in gold price. 110 down is a lot!!!

 

[jovialTrader]

Just out of curiousity...the price of gold now has been driven up to ard US$650 mark. This is mainly due the middle east unrest. Now let's see what will happen when the tension is over...the gold price will go down again (slight correction). Will this drive the price of OXR down again?

Wat do u guys think?

JT

 

[saichuen]

call me wishful thinking, but i still believe it's quite possible to buy OXR at $2.80 to $3.00 later. as for the gold price, it will probably head down shortly before giving it a shot at $700.

my views only of course...