OZL - Oz Minerals

[oldblue]

Looks like div's will go. Luv to see BHP pick it up now that RIO deal is off. Prominent Hill is only 130 klm from Olympic Dam.

Depends whether you're looking at this from the point of view of BHP or OZL. A bid at this stage would be less than generous whereas OZL have the financial strength and earnings from gold and copper ( at least) to weather the weakness of the next few years, IMO.

 

[coml483]

After the failed BHP takeover of RIO has anyone heard more about a potential BHP takeover of OZL? We know BHP's balance sheet is good, and the analysts are saying it would make sense for BHP to consider the smaller miners such as OZL as a potential given the locality of mines....... Do you think the potential takeover could move the SP of OZL up? I bought OZL last month.......

 

[rub92me]

After the failed BHP takeover of RIO has anyone heard more about a potential BHP takeover of OZL? We know BHP's balaen nce sheet is good, and the analysts are saying it would make sense for BHP to consider the smaller miners such as OZL as a potential given the locality of mines....... Do you think the potential takeover could move the SP of OZL up? I bought OZL last month.......

If anyone would make a bid for OZL now, it would have to be at a premium of the current shareprice. Seeing how hard it has tanked though, I'm not sure it would fetch as much as the price a month ago. I'm not expecting anyone to take this over in the very short term though.
If the big players like BHP are smart they would look for and wait for companies to go under and then pick up the assets for a song and a dance, rather than bid for them now and save them from going under. OZL doesn't fit in that category imho.

 

[PhoenixXx]

Does anyone know why the P/E is keep on going up (22) and the S/P keep on dropping?
It doesn't really make sense............................................

 

[Prospector]

It is now in a trading halt. If it is bad news, then try convince me there hasnt been insider trading happening!

 

[rub92me]

Does anyone know why the P/E is keep on going up (22) and the S/P keep on dropping?
It doesn't really make sense............................................

That's because the forecast earnings have been dropping even harder. Huntley's median forecast for FY 2008 is actually 0.9 cents, which would put them at a PE of 61; i.e. according to that they are still considered to be overvalued. All a bit useless these figures imo though, they're at the mercy of commodity prices so all these forecasts are pure guess anyway.

 

[tcoates]

The trading halt is for "debt extension"

The other news items around this also interesting - see

http://finance.google.com/finance?q=ASX:OZL

None of it seems like pleasant reading.

Any somebody was recommending it yesterday? (email I received)

Tim

 

[sammy84]

What happened to all the spare cash Zinifex were meant to bring to the merger! I cant understand how it has gone so pair shaped so fast

 

[oldblue]

Well, I'm taking the optimistic view that OZL are doing the responsible thing by calling a trading halt while the debt is re-negotiated. Otherwise the news would creep into the market and all hell would break loose on the SP, even more so than recently!
Not to say that everything in the garden is rosy by any means.

 

[YELNATS]

What happened to all the spare cash Zinifex were meant to bring to the merger! I cant understand how it has gone so pair shaped so fast

As per Zinifex's 13/05/2008 presentation to the Merrill Lynch 2008 Miami Conference,

As of 31/12/2007,

combined (ie. with OXR) cash on hand was A$2,474 million
combined interest bearing debt was A$539 million
combined net cash balance was A$1,935 million.

Can't understand the current issue with OZL. How and where has this net
A$2 billion has been deployed in the interim ???

 

[rub92me]

As per Zinifex's 13/05/2008 presentation to the Merrill Lynch 2008 Miami Conference,

As of 31/12/2007,

combined (ie. with OXR) cash on hand was A$2,474 million
combined interest bearing debt was A$539 million
combined net cash balance was A$1,935 million.

Can't understand the current issue with OZL. How and where has this net
A$2 billion has been deployed in the interim ???

I think AUD 800 million of the cash was used to buy AGM with Nickel peaking.
Plus they helped out their mates in TOE by paying over the odds to cover the shortfall in the issue. Ongoing production costs likely quite hefty too.
Add to that that their debt was in USD and cash in AUD.
Not a pretty picture.

 

[N1Spec]

As per Zinifex's 13/05/2008 presentation to the Merrill Lynch 2008 Miami Conference,

As of 31/12/2007,

combined (ie. with OXR) cash on hand was A$2,474 million
combined interest bearing debt was A$539 million
combined net cash balance was A$1,935 million.

Can't understand the current issue with OZL. How and where has this net
A$2 billion has been deployed in the interim ???

i suggest you ring or email the company and ask, i did the same with PNA and got an answer quite promptly (see PNA thread).

 

[profithunter]

Oh Dear

MELBOURNE (Dow Jones)--OZ Minerals Ltd. (OZL.AU) said Monday it plans to suspend
trading in its shares until Dec. 29 as it continues talks with its lenders over
refinancing of US$560 million worth of debt.
The diversified miner went into a trading halt last Friday after its lenders refused to
grant it an extension on the Nov. 30 deadline for refinancing of the debt, and had been
due to resume trade Tuesday after negotiations with its lenders.
The Melbourne-based company, which has been hit hard by sagging commodity prices, said
Monday its syndicate of lenders has now granted it an extension of until Dec. 29 to
refinance the debt, with an option to extend this to Jan. 31 if certain conditions are
satisfied.
OZ Minerals shares are suspended and the company said it expects to seek reinstatement
to normal trading by Dec. 29, subject to completing its refinancing negotiations.
"The company requires time to continue negotiations with the counter-parties to
the refinancing and believes these negotiations may be jeopardized if they took place
during a period of potential extreme share price volatility," the miner said in a
statement.

 

[Nyden]

Oh Dear

MELBOURNE (Dow Jones)--OZ Minerals Ltd. (OZL.AU) said Monday it plans to suspend
trading in its shares until Dec. 29 as it continues talks with its lenders over
refinancing of US$560 million worth of debt.
The diversified miner went into a trading halt last Friday after its lenders refused to
grant it an extension on the Nov. 30 deadline for refinancing of the debt, and had been
due to resume trade Tuesday after negotiations with its lenders.
The Melbourne-based company, which has been hit hard by sagging commodity prices, said
Monday its syndicate of lenders has now granted it an extension of until Dec. 29 to
refinance the debt, with an option to extend this to Jan. 31 if certain conditions are
satisfied.
OZ Minerals shares are suspended and the company said it expects to seek reinstatement
to normal trading by Dec. 29, subject to completing its refinancing negotiations.
"The company requires time to continue negotiations with the counter-parties to
the refinancing and believes these negotiations may be jeopardized if they took place
during a period of potential extreme share price volatility," the miner said in a
statement.

Dear oh dear! To think I was trading these just a couple of days ago ... thank goodness I sold! They must be having major problems as to suspend for this long, goodness. As if OZL holders didn't have enough to fret about

 

[OK2]

Safest stock on the market today, guaranteed not to go down in value. Always look on the bright side of life.

 

[Johnny123]

Someone has a conspiracy theory here:

Is OZ Minerals in a takeover conspiracy?

Notice this morning's announcement that Morgan Stanley is increasing its stake in OZL again.

 

[GumbyLearner]

Does anyone know the actual date that PH will be up and running?
Their last quarterly rpt stated that PH was on time and on budget
for November.

 

[auswede]

Does anyone know the actual date that PH will be up and running?
Their last quarterly rpt stated that PH was on time and on budget
for November.

Well I was working up there and been told by my former workmates who are up there that they are staying till the 22nd of December and that's it for them. They are scaffolders and scaffolders are generally one of the last to leave because they need to stick around to give people access to different areas. So anytime after that I guess :

So what's the general feeling on this stock? Assuming the debt side of things are taken care of, what sort of prices could we be seeing in the next 12-18 months? Worth the risk? (I realise the answer is largely at the whim of commodity prices, but just after some opinions). Bargain buy or speculative risk?

 

[Family_Guy]

Is everything going OK here? Lender pulls the carpet on an extention and its halted. Did they get around to refinancing? Is this gunna get smashed when it comes out of a halt? I got smashed when i bought at $1, and i bought again at .50 but i'm a bit worried it'll get pushed down again.

 

[J.B.Nimble]

Is everything going OK here? Lender pulls the carpet on an extention and its halted. Did they get around to refinancing? Is this gunna get smashed when it comes out of a halt? I got smashed when i bought at $1, and i bought again at .50 but i'm a bit worried it'll get pushed down again.

Well, don't worry - what is done is done and there is nought you can do about it now. When it comes out of suspension it will be on the back of an announcement, be it good or bad. At that point it will either be smashed and gone, or it will be off like a rocket (carrying lead ballast). Right now I bet there must be a lot of prayers for finance and a quick smooth start up at Prominent Hill...