ctp6360 said: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!)
laurie said: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
LPA said: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?
powwww said:from today's age -- http://www.theage.com.au/news/busin...loodbath/2006/06/11/1149964410615.html?page=2
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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.
nizar said:
LPA said: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.
jovialTrader said: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
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