OZ MINERALS LIMITED (OZL)
The merged entity of Oxiana ((OXR)) and Zinifex ((ZFX)).
OZ Minerals new ASX ticker code of OZL will be effective as of Wednesday 23 July.
Macquarie 23/07/2008 Outperform $3.10 49.0%
For the first report on the merged entity, which will now be under the code ((OZL)), the broker notes quarterly production was as expected. The broker retains an Outperform on the new OZ Minerals and has reset the old Oxiana target of $4.00 to $3.10.
On the EPS front, it's a case of dilution along with forecast lower zinc prices and higher costs. The result is falls of 46%, 56% and 47% in 2008-10.
Citi 23/07/2008 Buy, High Risk $3.60 73.1%
Citi says Oxiana's June quarter production report shows zinc and gold in-line with estimates but copper and lead lagging, while costs rose for fuel, acid, lime and flotation reagents.
It maintains its Buy rating and $3.60 target price.
JP Morgan 23/07/2008 Overweight $2.50 20.2%
Target $2.50 (was $2.60). The group's production report was mixed in the broker's view as revised production guidance has resulted in cuts to earnings estimates.
This flows through into a slight cut to its price target but there is no change to the broker's Overweight rating.
UBS 23/07/2008 Neutral $2.90 39.4%
The June quarterly report from Oxiana showed output in line with UBS's forecasts. Group zinc production was 2.5% below analysts' forecast.
The analysts believe Oxiana represents good value at current levels. Growth would seem to be around the corner with Prominent Hill on track for commissioning and first nickel sales from Avebury due in August, they note.
The target price for the merged company is $2.90 (previously $3.75 for Oxiana). The broker reminds us all the name change to OZ Minerals takes effect from July 23rd. That's today.
Credit Suisse 23/07/2008 Underperform $2.50 20.2%
Production in the June quarter was in line with expectations but the broker suggests the result highlights the current cost pressures the group faces.
To account for this the broker has cut its earnings estimates going forward, which supports its Underweight rating on the stock.
Deutsche Bank 23/07/2008 Hold $2.60 25.0%
Soon to be Oz Minerals, Oxiana reported one more time quarterly production figures on its own and they did not mesmerise analysts at Deutsche Bank. The analysts point out that zinc operations continue to disappoint due to a sinking zinc price but costs at various operations are an issue as well.
Target price has fallen to $2.60 from $3.00. The broker doesn't see zinc prices recovering before 2009 and thus there's no catalyst for the shares, the analysts believe.
Cuts made to earnings forecasts are quite sizeable.
ABN Amro 23/07/2008 rates OZL as Buy - This is the broker's first entry for the new OZ Minerals, the merged entity of Oxina ((OXR)) and Zinifex ((ZFX)). The first point to note is that the quarterly production reports of both were largely in line with expectations.
Thereafter it's just a matter of establishing some merged forecasts. On a transition basis, the target has risen from $2.88 to $3.67.
The company's fiscal year ends in December. ABN Amro forecasts a full year FY08 dividend of 8.00 cents and EPS of 8.35 cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00.
Average Target Price $2.95 41.8% upside
Admin note: Oz Minerals (OZL) was formed by the merger of Oxiana (OXR) and Zinifex (ZFX). For previous discussion on OXR and ZFX please refer to their respective threads:
Oxiana: https://www.aussiestockforums.com/forums/showthread.php?t=4642
Zinifex: https://www.aussiestockforums.com/forums/showthread.php?t=2750
The merged entity of Oxiana ((OXR)) and Zinifex ((ZFX)).
OZ Minerals new ASX ticker code of OZL will be effective as of Wednesday 23 July.
Macquarie 23/07/2008 Outperform $3.10 49.0%
For the first report on the merged entity, which will now be under the code ((OZL)), the broker notes quarterly production was as expected. The broker retains an Outperform on the new OZ Minerals and has reset the old Oxiana target of $4.00 to $3.10.
On the EPS front, it's a case of dilution along with forecast lower zinc prices and higher costs. The result is falls of 46%, 56% and 47% in 2008-10.
Citi 23/07/2008 Buy, High Risk $3.60 73.1%
Citi says Oxiana's June quarter production report shows zinc and gold in-line with estimates but copper and lead lagging, while costs rose for fuel, acid, lime and flotation reagents.
It maintains its Buy rating and $3.60 target price.
JP Morgan 23/07/2008 Overweight $2.50 20.2%
Target $2.50 (was $2.60). The group's production report was mixed in the broker's view as revised production guidance has resulted in cuts to earnings estimates.
This flows through into a slight cut to its price target but there is no change to the broker's Overweight rating.
UBS 23/07/2008 Neutral $2.90 39.4%
The June quarterly report from Oxiana showed output in line with UBS's forecasts. Group zinc production was 2.5% below analysts' forecast.
The analysts believe Oxiana represents good value at current levels. Growth would seem to be around the corner with Prominent Hill on track for commissioning and first nickel sales from Avebury due in August, they note.
The target price for the merged company is $2.90 (previously $3.75 for Oxiana). The broker reminds us all the name change to OZ Minerals takes effect from July 23rd. That's today.
Credit Suisse 23/07/2008 Underperform $2.50 20.2%
Production in the June quarter was in line with expectations but the broker suggests the result highlights the current cost pressures the group faces.
To account for this the broker has cut its earnings estimates going forward, which supports its Underweight rating on the stock.
Deutsche Bank 23/07/2008 Hold $2.60 25.0%
Soon to be Oz Minerals, Oxiana reported one more time quarterly production figures on its own and they did not mesmerise analysts at Deutsche Bank. The analysts point out that zinc operations continue to disappoint due to a sinking zinc price but costs at various operations are an issue as well.
Target price has fallen to $2.60 from $3.00. The broker doesn't see zinc prices recovering before 2009 and thus there's no catalyst for the shares, the analysts believe.
Cuts made to earnings forecasts are quite sizeable.
ABN Amro 23/07/2008 rates OZL as Buy - This is the broker's first entry for the new OZ Minerals, the merged entity of Oxina ((OXR)) and Zinifex ((ZFX)). The first point to note is that the quarterly production reports of both were largely in line with expectations.
Thereafter it's just a matter of establishing some merged forecasts. On a transition basis, the target has risen from $2.88 to $3.67.
The company's fiscal year ends in December. ABN Amro forecasts a full year FY08 dividend of 8.00 cents and EPS of 8.35 cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00.
Average Target Price $2.95 41.8% upside
Admin note: Oz Minerals (OZL) was formed by the merger of Oxiana (OXR) and Zinifex (ZFX). For previous discussion on OXR and ZFX please refer to their respective threads:
Oxiana: https://www.aussiestockforums.com/forums/showthread.php?t=4642
Zinifex: https://www.aussiestockforums.com/forums/showthread.php?t=2750