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If OXR buy ZFX, I will be "not happy, Jan". My main reason for saying this is that my broker has just come back from a junket tour of China with a number of investment heavies.
His first comment following his return yesterday was that the forecast forr future metal prices was all good with the EXCEPTION of zinc. I hope OXR are aware of this and act accordingly.
His first comment following his return yesterday was that the forecast forr future metal prices was all good with the EXCEPTION of zinc. I hope OXR are aware of this and act accordingly.
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Hi greenfs, I would be interested in knowing what his reason was for zinc being the odd metal out? do you know if it was just supply and demand, or something else?
Over what time horizon was this "forecast" made? It may only be a short term forecast, 6, 12, 18 months? I'm sure OXR, if they are interested in ZFX, would be looking at long term forecasts, ie. 5 , 10, 20 years and beyond.
Nyden
G.E. Money Genie
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Over what time horizon was this "forecast" made? It may only be a short term forecast, 6, 12, 18 months? I'm sure OXR, if they are interested in ZFX, would be looking at long term forecasts, ie. 5 , 10, 20 years and beyond.
Long term, anaylists are still rather positive on zinc - as a lot of mines will be nearing exhaustion in the coming years.
So far though, all just seems to have been rumor
My broker has placed a $5 price tag on this stock on the basis that OXR will start paying dividends at a yield of 6% within the next 12 months. Given the inflow of capital from the UK asset sale, it makes some sense especially if management does not look to go on the acquisition trail. I for one will be very happy if OXR does not make a bid for ZFX given the forecast future price decline of zinc.
Longer term he has a much rosier outlook on the share price for this company.
Longer term he has a much rosier outlook on the share price for this company.
michael_selway
Coal & Phosphate, thats it!
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Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 36.6 25.0 25.8 43.1
DPS 8.0 9.0 9.0 11.7
http://www.businessspectator.com.au...wn-LME-slides-98CAB?OpenDocument?OpenDocument
Shanghai copper, zinc limit down, LME slides
Reuters
SINGAPORE -- Shanghai copper and zinc futures fell by their daily limits and support for London futures faded as the appetite for risk shrank and investors bailed out of commodities.
The January copper contract on the Shanghai Futures Exchange fell by its 4 percent daily limit to 55,780 yuan ($US7,513) from Monday's settlement. Copper for delivery in three months on the London Metal Exchange was down 3.2 percent, or $US20, at an eight-month low of $US6,575 after a 3.5 per cent slide on Monday.
"Absolutely brutal" was how Investec described trading on the LME, adding: "The whole base metals complex received a thorough hammering as sustained selling dominated proceedings."
Dealers said copper could fall to $US6,000 if markets fail to stabilise this week.
"We have nudged below support at $US6,800, which suggests more falls to come. If we close below here for the week we could see copper down to $US6,000," a dealer in Hong Kong said.
Angst about credit markets was heightened after Goldman Sachs cut Citigroup to "sell" and said the bank may have to write off $US15 billion against mortgage losses, while Swiss Re , the world's biggest reinsurer, revealed a $US1 billion writedown related to credit losses.
"The concern is that if there are unknown losses still to be recorded, the risk aversion that has been present in markets will remain," said Tony Brennan, equity strategist at Deutsche Bank.
In New York, COMEX copper for December delivery shed 17.80 cents, or 5.6 per cent, to settle at $US2.9835 a lb.
"The fall is mostly psychologically driven, as consumption in China remains stable," said Shen Haihua, an analyst at Maike Futures.
"Some funds have moved their copper positions to far forward contracts in London to avoid some of the risk inherent in the three-month contract," he said, adding that they were gambling that global output would be lower-than-expected due to production problems and higher energy costs.
January's zinc contract was down by its 6 per cent daily limit at 18,205 yuan after falling limit down on Friday and Monday as investors fretted that a rumoured change in Chinese export taxes will leave the country awash with the metal.
Benchmark LME zinc tumbled 3.6 percent or $US85 to $US2,270 a tonne, while lead dropped 2.5 per cent to $US2,965.
"Lead was by far the biggest loser on the day, plummeting by almost 9 per cent as funds liquidated long positions," Investec said.
Lead has come under pressure since Ivernia , which runs the Magellan lead mine in Western Australia, said last week that it was confident that it would get approval to restart shipments from the mine.
Exports of lead concentrate were halted in March due to bird deaths near the port of Esperance possibly due to lead poisoning.
Resource stocks were further pressured by declines in metals prices and worries that demand will be hurt by gathering gloom about the world economy.
Mining giant BHP Billiton fell more than 3 per cent, Korea Zinc slid 7 per cent and Sumitomo Metal Mining fell 4.5 per cent.
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Shanghai copper, zinc limit down, LME slides
Reuters
SINGAPORE -- Shanghai copper and zinc futures fell by their daily limits and support for London futures faded as the appetite for risk shrank and investors bailed out of commodities.
The January copper contract on the Shanghai Futures Exchange fell by its 4 percent daily limit to 55,780 yuan ($US7,513) from Monday's settlement. Copper for delivery in three months on the London Metal Exchange was down 3.2 percent, or $US20, at an eight-month low of $US6,575 after a 3.5 per cent slide on Monday.
"Absolutely brutal" was how Investec described trading on the LME, adding: "The whole base metals complex received a thorough hammering as sustained selling dominated proceedings."
Dealers said copper could fall to $US6,000 if markets fail to stabilise this week.
"We have nudged below support at $US6,800, which suggests more falls to come. If we close below here for the week we could see copper down to $US6,000," a dealer in Hong Kong said.
Angst about credit markets was heightened after Goldman Sachs cut Citigroup to "sell" and said the bank may have to write off $US15 billion against mortgage losses, while Swiss Re , the world's biggest reinsurer, revealed a $US1 billion writedown related to credit losses.
"The concern is that if there are unknown losses still to be recorded, the risk aversion that has been present in markets will remain," said Tony Brennan, equity strategist at Deutsche Bank.
In New York, COMEX copper for December delivery shed 17.80 cents, or 5.6 per cent, to settle at $US2.9835 a lb.
"The fall is mostly psychologically driven, as consumption in China remains stable," said Shen Haihua, an analyst at Maike Futures.
"Some funds have moved their copper positions to far forward contracts in London to avoid some of the risk inherent in the three-month contract," he said, adding that they were gambling that global output would be lower-than-expected due to production problems and higher energy costs.
January's zinc contract was down by its 6 per cent daily limit at 18,205 yuan after falling limit down on Friday and Monday as investors fretted that a rumoured change in Chinese export taxes will leave the country awash with the metal.
Benchmark LME zinc tumbled 3.6 percent or $US85 to $US2,270 a tonne, while lead dropped 2.5 per cent to $US2,965.
"Lead was by far the biggest loser on the day, plummeting by almost 9 per cent as funds liquidated long positions," Investec said.
Lead has come under pressure since Ivernia , which runs the Magellan lead mine in Western Australia, said last week that it was confident that it would get approval to restart shipments from the mine.
Exports of lead concentrate were halted in March due to bird deaths near the port of Esperance possibly due to lead poisoning.
Resource stocks were further pressured by declines in metals prices and worries that demand will be hurt by gathering gloom about the world economy.
Mining giant BHP Billiton fell more than 3 per cent, Korea Zinc slid 7 per cent and Sumitomo Metal Mining fell 4.5 per cent.
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Nyden
G.E. Money Genie
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I bought a lot more OXR today, after getting out of a spec play. At a 6% drop; a recovery would be fantastic I hope to see a gain as early as tomorrow :
Whatever happened to all those takeover rumors? Taken a back seat already?
I hope to see a gain as early as tomorrow :Whatever happened to all those takeover rumors? Taken a back seat already?
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Around these levels I think OXR presents good value for long termers. Sure it could drop to 3.25-3.50 still on back of metals weakness.
I have covered my CFD shorts and gone long a small parcel. Still remain short via written calls.
The copper and probably zinc outlook for next few months don't look too crash hot with shutdowns starting next month for the Christmas, New Year period. I'd be surprized by any great draw on inventories.
Let's see if it plays out like last year?
I have covered my CFD shorts and gone long a small parcel. Still remain short via written calls.
The copper and probably zinc outlook for next few months don't look too crash hot with shutdowns starting next month for the Christmas, New Year period. I'd be surprized by any great draw on inventories.
Let's see if it plays out like last year?
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Nyden, I'm with you.
Have also bought OXR recently and am still sitting on parcels bought well below $3 around 6 mths ago. Any price below $4 is good buying on this one. Any further takeover talk will send it upwards quickly. Plus IMHO I think it is a good long termer anyway, takeover or not.
Have also bought OXR recently and am still sitting on parcels bought well below $3 around 6 mths ago. Any price below $4 is good buying on this one. Any further takeover talk will send it upwards quickly. Plus IMHO I think it is a good long termer anyway, takeover or not.
I've been holding onto them since $0.90 and believe me it's been a ride! But I always had the opinion it would be a long term prospect and I am continually having to tell myself this, and resist the selling urge.
For copper to be down about 18% and zinc 30% from yearly highs and OXIANA being down about 15%...its not to bad a situation to be in. I am holding. It will come back in the short term IMO.
Is the Ox eyeing Equinox?
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Friday, November 23, 2007
Kate Haycock
AN OXIANA and Zinifex merger has been rumoured for months now, but could Oxiana be considering a takeover play for emerging copper miner Equinox Minerals instead?
Oxiana is rumoured to be considering a bid for Equinox, which is rapidly progressing its substantial Lumwana copper project in Zambia into production.
Oxiana managing director Owen Hegarty has not been shy about his expansion plans for the company, which have so far focused on Australia and the Asia Pacific.
The company's flagship operations include the Sepon gold and copper project in Laos and the Golden Grove copper-zinc-gold and silver mine in Western Australia.
These combined operations are expected to produce up to 78,000 tonnes of copper, 150,000t zinc, and up to 65,000oz of gold.
The Melbourne-based mid-tier miner is also bringing the Prominent Hill project online, with production expected to start next year. In its first full year of production, Prominent Hill is expected to produce 117,000t of copper, 86,000oz gold and 390,000oz of silver.
Equinox's Lumwana project, due to come online in the second quarter of 2008, has a production rate target of 169,000t of copper concentrates a year for the first six years, and a planned mine life of 37 years.
The project is the largest single foreign investment in the African nation of Zambia, and once it reaches targeted production will be a substantial copper producer. Equinox is also looking at establishing uranium production from the mine.
However, dual-listed Equinox would not be a cheap buy: the company's market capitalisation in Australia is $2.72 billion, while on the Toronto Stock Exchange it has a market cap of $C2.38 billion ($A2.77 billion).
Oxiana has a market cap of around $A5.48 billion on the ASX.
Equinox would be a new foray for Oxiana beyond its Asia-Pacific focus. Previously, the Ox has been linked with zinc miner Zinifex, but a deal between the two has yet to materialise.
Equinox managing director Craig Williams was not available for comment this morning.
Shares in the company were last trading at $4.81, down 16c, while Oxiana was last at $3.57, up 5c.
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Friday, November 23, 2007
Kate Haycock
AN OXIANA and Zinifex merger has been rumoured for months now, but could Oxiana be considering a takeover play for emerging copper miner Equinox Minerals instead?
Oxiana is rumoured to be considering a bid for Equinox, which is rapidly progressing its substantial Lumwana copper project in Zambia into production.
Oxiana managing director Owen Hegarty has not been shy about his expansion plans for the company, which have so far focused on Australia and the Asia Pacific.
The company's flagship operations include the Sepon gold and copper project in Laos and the Golden Grove copper-zinc-gold and silver mine in Western Australia.
These combined operations are expected to produce up to 78,000 tonnes of copper, 150,000t zinc, and up to 65,000oz of gold.
The Melbourne-based mid-tier miner is also bringing the Prominent Hill project online, with production expected to start next year. In its first full year of production, Prominent Hill is expected to produce 117,000t of copper, 86,000oz gold and 390,000oz of silver.
Equinox's Lumwana project, due to come online in the second quarter of 2008, has a production rate target of 169,000t of copper concentrates a year for the first six years, and a planned mine life of 37 years.
The project is the largest single foreign investment in the African nation of Zambia, and once it reaches targeted production will be a substantial copper producer. Equinox is also looking at establishing uranium production from the mine.
However, dual-listed Equinox would not be a cheap buy: the company's market capitalisation in Australia is $2.72 billion, while on the Toronto Stock Exchange it has a market cap of $C2.38 billion ($A2.77 billion).
Oxiana has a market cap of around $A5.48 billion on the ASX.
Equinox would be a new foray for Oxiana beyond its Asia-Pacific focus. Previously, the Ox has been linked with zinc miner Zinifex, but a deal between the two has yet to materialise.
Equinox managing director Craig Williams was not available for comment this morning.
Shares in the company were last trading at $4.81, down 16c, while Oxiana was last at $3.57, up 5c.
41,000,000 traded as at 320pm..15,400,000 is average...was it the end of options that did this or is there something more to it? Any whispers out there again?
Not sure if this is the reason but in todays Fin Review there was an article saying how Oxiana has been shortlisted for a mine in India
41,000,000 traded as at 320pm..15,400,000 is average...was it the end of options that did this or is there something more to it? Any whispers out there again?
89,388,978 bloody trades....HUGE. What the heck was it all about?
I am sure its not just a mine posibility or end of options.Please correct if i am wrong but some 40,000,000 in last half hour was traded...
I am only looking at a very basic chart as my other system has crashed. But if this is true, there is definately something cooking.
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