OZL - Oz Minerals
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AIR Midday Report today
"UBS cuts their Telstra target price from 525c to 455c. Retains BUY. But then they also downgrade to a SELL on Oz Minerals…a little late it seems. 50c target price. "
A little late????
"UBS cuts their Telstra target price from 525c to 455c. Retains BUY. But then they also downgrade to a SELL on Oz Minerals…a little late it seems. 50c target price. "
A little late????
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The options market opened from 2 til 4 on Thursday and I tried to sell my 40c calls. There were no takers at .01. Interestingly the 40c puts were changing hands at about 10c which would place a value on OZL of about 30c. I asked my broker not to exercise the calls otherwise I would been forced to buy OZL at 40c. Not a good idea when the market sees OZL at 30c. (I don't know what UBS are up to if they think the target is 50c). If I had exercised the calls I wonder where my broker would get the stock from if the shares were suspended. Maybe there was someone somewhere hoping he was going to get his stock called away and now cursing because it wasn't!
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What annoys me most (as a shareholder) is that IMF are taking up a case against OZL, as we all know, but...
"The claims relate to alleged misleading and deceptive conduct and alleged breaches by OZL of its continuous disclosure obligations between 28 February 2008 and 3 December 2008," IMF said.
IMF said all shareholders who bought Oz Mineral's shares from February 28, 2008 to December 3, or swapped Zinifex shares for Oz Minerals shares, were eligible to take part in the claim."
Oh, so all of a sudden, because I bought OUTSIDE these times, my money / shares do not rank as equally as those / with others who did buy in this window ?
Maybe if we had all known, as we should have done, some could have sold or done something about their position. It would have been real nice to know.
Maybe the fact that I enlisted in the DRP and thus 'bought' shares may entitle me to take part ?!
Please understand, my anger is directed at the principle not necessarily of what OZL may or may not have done, but the fact that IMF are potentially shutting out shareholders who bought outside this window. This is wrong, and strikes me as a bit stupid, because the more people who are upset, the stronger the case, surely ?! If we were all invited to the party, besides being a highly entertaining spectacle, it would send a clear message about just who is REALLY upset.
"The claims relate to alleged misleading and deceptive conduct and alleged breaches by OZL of its continuous disclosure obligations between 28 February 2008 and 3 December 2008," IMF said.
IMF said all shareholders who bought Oz Mineral's shares from February 28, 2008 to December 3, or swapped Zinifex shares for Oz Minerals shares, were eligible to take part in the claim."
Oh, so all of a sudden, because I bought OUTSIDE these times, my money / shares do not rank as equally as those / with others who did buy in this window ?
Maybe if we had all known, as we should have done, some could have sold or done something about their position. It would have been real nice to know.
Maybe the fact that I enlisted in the DRP and thus 'bought' shares may entitle me to take part ?!
Please understand, my anger is directed at the principle not necessarily of what OZL may or may not have done, but the fact that IMF are potentially shutting out shareholders who bought outside this window. This is wrong, and strikes me as a bit stupid, because the more people who are upset, the stronger the case, surely ?! If we were all invited to the party, besides being a highly entertaining spectacle, it would send a clear message about just who is REALLY upset.
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Very true, oldblue. I tell you what though, depending upon which assets they sell (and I've yet to see which they are), I would seriously consider exiting my holding too....If and when they return to trading.
A long, protracted legal case will not help anyone. It is a drain on resources and shifts focus away from what should actually be happening, which is getting the business running and trading again. Sitting here in mothballed, caretaker mode for nigh on 12 weeks (disclaimer, I have lost count of when the trading halt kicked in !) is annoying because my online broker rates my holding worth as zero and hence, distorts the actual performance stats.
A long, protracted legal case will not help anyone. It is a drain on resources and shifts focus away from what should actually be happening, which is getting the business running and trading again. Sitting here in mothballed, caretaker mode for nigh on 12 weeks (disclaimer, I have lost count of when the trading halt kicked in !) is annoying because my online broker rates my holding worth as zero and hence, distorts the actual performance stats.
Yes, there'll be a lot of holders weighing up the odds once some assets start getting sold and ( hopefully) the shares are back on the boards. Likely to be a rush for the exits I expect so the smart thing may be to keep watching and waiting for a while, especially if the assets attract reasonable bids and more particularly if there are reasons to be hopeful about the PoG, zinc, copper etc.
bigdog
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Not VG news
13/02/2009 Possible asset write-downs
http://media.wotnews.com.au/asxann/00927015.pdf
ASX Release
Possible asset write-downs
As part of the preparation of its annual accounts, OZ Minerals has reviewed the carrying value of its assets, as required under relevant accounting standards. Based on an initial review, the Company has formed the view that write-downs of between $2.3 billion and $2.8 billion will be recorded in the Company’s annual accounts for 2008.
Initial indications of the breakdown of this amount are as follows:
Please note that the assessment of the carrying value of the Company’s assets has not yet been reviewed by the Company’s auditors, Audit Committee or its Board and full details will be set out and verified with the release of the full year financial accounts.
13/02/2009 Possible asset write-downs
http://media.wotnews.com.au/asxann/00927015.pdf
ASX Release
Possible asset write-downs
As part of the preparation of its annual accounts, OZ Minerals has reviewed the carrying value of its assets, as required under relevant accounting standards. Based on an initial review, the Company has formed the view that write-downs of between $2.3 billion and $2.8 billion will be recorded in the Company’s annual accounts for 2008.
Initial indications of the breakdown of this amount are as follows:
- Impairment for current mines and development projects, advanced exploration projects such as Canada and deferred projects such as Avebury of between $1.9 billion and $2.2 billion.
- De-recognition of deferred tax assets in respect of tax losses of between $0.2 billion and $0.3 billion.
- Negative mark to market adjustment of listed equity investments (mainly Toro & Nyrstar) based on their 31 Dec 08 share price of between $0.2 billion and $0.3 billion.
Please note that the assessment of the carrying value of the Company’s assets has not yet been reviewed by the Company’s auditors, Audit Committee or its Board and full details will be set out and verified with the release of the full year financial accounts.
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So what would be next? File for bankruptcy?
The Feb 27 deadline is due in 2 weeks time.
I never expect OZL to be reopened after it was suspended anyway
The Feb 27 deadline is due in 2 weeks time.
I never expect OZL to be reopened after it was suspended anyway
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Wonder what's next for OZL....
The Australian
NEWCREST Mining has booked a modest profit rise for its first half but has shied away from purchasing the Martabe gold project in Indonesia from debt-laden OZ Minerals.
Australia's biggest gold company said net profit for the six months to December 31 was $154 million, compared with an $8.1 million loss in the previous corresponding period, which was affected by a $2 billion restructure of the company's gold hedge book.
Underlying profit for the six months increased by 16 per cent on the previous corresponding period to $241.6 million, with higher gold prices offsetting a fall in output. No interim dividend was declared.
Newcrest recently raised $750 million by selling shares to institutional investors, and could raise another $150 million through a share purchase plan to repay debt and fund expansion and possible acquisitions.
Distressed miner OZ Minerals is pursuing asset sales to help repay its debt, with analysts speculating that Newcrest was one of the front-runners for its undeveloped Martabe project in Sumatra, Indonesia.
"One of the main determinants of projects for us, and one of the main reasons we got into the Hidden Valley and Wafi-Golpu area (in PNG), is there is huge upside exploration-wise," Newcrest chief executive Ian Smith said. "Everything we have seen about Martabe so far, and what our people have looked at from a distance, suggests the upside exploration-wise is not that great."
Shares in the company increased 67c to $34.67.
Newcrest expects input costs to fall during the current calendar year and will continue to pursue cost reductions at the Telfer mine in Western Australia and the Gosowong operation in Indonesia.
Revenue for the half rose 15.2 per cent to $1.29 billion, while operating earnings before interest, tax, depreciation and amortisation increased 15 per cent to $507.3 million. It achieved a realised gold price of $1076 an ounce in the six months to December 31, compared with $843 in the previous corresponding period. Newcrest owns and operates six mines in Australia and Indonesia
http://www.theaustralian.news.com.au/business/story/0,28124,25051031-36418,00.html
The Australian
NEWCREST Mining has booked a modest profit rise for its first half but has shied away from purchasing the Martabe gold project in Indonesia from debt-laden OZ Minerals.
Australia's biggest gold company said net profit for the six months to December 31 was $154 million, compared with an $8.1 million loss in the previous corresponding period, which was affected by a $2 billion restructure of the company's gold hedge book.
Underlying profit for the six months increased by 16 per cent on the previous corresponding period to $241.6 million, with higher gold prices offsetting a fall in output. No interim dividend was declared.
Newcrest recently raised $750 million by selling shares to institutional investors, and could raise another $150 million through a share purchase plan to repay debt and fund expansion and possible acquisitions.
Distressed miner OZ Minerals is pursuing asset sales to help repay its debt, with analysts speculating that Newcrest was one of the front-runners for its undeveloped Martabe project in Sumatra, Indonesia.
"One of the main determinants of projects for us, and one of the main reasons we got into the Hidden Valley and Wafi-Golpu area (in PNG), is there is huge upside exploration-wise," Newcrest chief executive Ian Smith said. "Everything we have seen about Martabe so far, and what our people have looked at from a distance, suggests the upside exploration-wise is not that great."
Shares in the company increased 67c to $34.67.
Newcrest expects input costs to fall during the current calendar year and will continue to pursue cost reductions at the Telfer mine in Western Australia and the Gosowong operation in Indonesia.
Revenue for the half rose 15.2 per cent to $1.29 billion, while operating earnings before interest, tax, depreciation and amortisation increased 15 per cent to $507.3 million. It achieved a realised gold price of $1076 an ounce in the six months to December 31, compared with $843 in the previous corresponding period. Newcrest owns and operates six mines in Australia and Indonesia
http://www.theaustralian.news.com.au/business/story/0,28124,25051031-36418,00.html
bigdog
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Asset sales before Feb 27 and fire sale of assets at bargin prices after Feb 27!
Sounds like Newcrest is looking to pickup assets at a cheaper price!
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Heh...reading between the lines it does sound like Newcrest might be trying to haggle on price.
Either way, this is bad news for OZL and fingers crossed we'll get some better news soon.
Prospector
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Make that 88.2 cents per share. China will end up owning much of Australia's resources soon! Seems better than what it is at the moment though.
prawn_86
Mod: Call me Dendrobranchiata
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Yep its a slow 'takeover' without the need for war. One day the West will wake up and realise that they no longer own anything and that China owns most of the world. China has a very long term plan IMO, unike short sighted Western govs.
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We need our Silver mines darn it. How many do we have left?
Australia needs real wealth.
Australia needs real wealth.
bigdog
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The fire sale of OZL was before Feb 27 and bad for the holders who paid $1+, $2+ and $3+ per share
IMHO, management suspended the trading of OZL shares back in November to prohibit the continuing fall in share price below 55 cents. Now they claim sale price "represents a premium of 50% to the last traded price of OZ Minerals on 27 November 2008"
ASX ANN today
16-02-2009 04:15 PM OZL All Cash Offer for OZ Minerals by Minmetals
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00927580
16-02-2009 04:15 PM OZL
All Cash Offer for OZ Minerals by Minmetals
Recommended 82.5 Cents per Share All Cash Offer For OZ Minerals By Minmetals
Highlights
• Agreement between OZ Minerals and Minmetals for are commended cash offer of 82.5 cents per share under a scheme of arrangement, valuing OZ Minerals’ equity at approximately $2.6billion
• Offer price represents a premium of 50% to the last traded price of OZ Minerals on 27 November 2008
• OZ Minerals shareholders also benefit from certainty of all cash consideration in a volatile market
• Provides increased certainty for OZ Minerals’ key stakeholders including financiers, employees, relevant regional communities and suppliers OZ Minerals’ outstanding debt facilities to be repaid by Minmetals upon successful completion of the transaction, which will resolve the company's present financial issues OZ Minerals’ outstanding convertible bonds to be redeemed or otherwise acquired
• OZ Minerals will continue to be headquartered in Australia Transaction unanimously recommended by OZ Minerals’ Board of Directors (subject to no superior competing proposal and independent expert confirming the transaction is in the best interest of OZ Minerals shareholders) Completion of transaction is subject to regulatory approvals and other conditions
OZ Minerals Limited (“OZMinerals”) and China Minmetals Nonferrous Metals Company Limited (“Minmetals”) announce that they have entered in to a Scheme Implementation Agreement for the proposed acquisition through a scheme of arrangement of all outstanding shares in OZ Minerals by Minmetals at a cash price of 82.5 cents per share.
OZ Minerals is proceeding with its previously announced asset sale program in relation to Martabe and GoldenGrove. Minmetals’ price will increase if the aggregate net sale proceeds received for those assets exceeds $425million (see Attachment).
The transaction is unanimously recommended by OZMinerals’ Board of Directors, subject to no superior competing proposal and confirmation by an independent expert that the transaction is in the best interest of OZ Minerals shareholders. Completion of the transaction is subject to a number of conditions including due diligence, the approval of regulatory authorities in Australia and the People’s Republic of China (“PRC”) as well as the approval of OZ Minerals’ current lending banks. Furthermore, an independent expert will be appointed to confirm whether the transaction is in the best interest of OZ Minerals shareholders.
Prospector
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I am betting that China and Russia own most of the US and Europe debt. And soon our raw materials. The US only understands takeover through war as you say, anything more subtle and it all goes under the radar.
bigdog
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http://business.smh.com.au/business/oz-minerals-agrees-to-chinese-takeover-20090216-88zm.html
OZ Minerals agrees to Chinese takeover
February 16, 2009 - 4:25PM
Debt-laden copper and gold producer OZ Minerals has recommended a $2.6 billion takeover offer from Chinese trading company Minmetals, the second Chinese resource house to come to the rescue of a debt-troubled Australian miner in less than a week, after Chinalco agreed to pump $30 billion into Rio Tinto.
Minmetals is offering 82.5 cents for each share in OZ Minerals, which is seeking to refinance $1 billion of debt by February 27, with the proposed acquisition to be completed via a scheme of arrangement.
OZ Minerals said the offer is unanimously recommended by its board in the absence of a superior one.
"The board has determined that Minmetals' cash proposal is in the best interests of OZ Minerals' shareholders and believes this is the best outcome for shareholders compared with any of the other options available to us,'' chairman Barry Cusack said in a statement.
Shares in OZ Minerals - which was formed through the merger of Oxiana and Zinifex last year - last traded at 55 cents before the company entered a voluntary suspension in December.
Onerous hurdles
The transaction is subject to regulatory approvals, completion of due diligence by Minmetals, OZ Minerals banking syndicate agreeing to extend the term of their debt arrangements and shareholder approval.
Some analysts question the willingness of the Federal Government to allow Chinese state-owned enterprises to take big stakes in domestic mining companies at a time when low commodities prices have left companies vulnerable to overseas predators with state funds.
"It looks like a decent price if all the hurdles are passed. But the hurdles look a bit onerous,'' said Tim Schroeders, portfolio manager at Pengana Capital. "It's far from a done deal.''
Asset sales continue
OZ Minerals, which has made no secret of its struggle to quickly sell off mines and refinance debt, warned on Friday it faced between $1.9 billion and $2.2 billion in impairments on underperforming mines.
The company has been trying to unload assets across Australia, South-East Asia, North America and North Africa to help it meet a February 27 deadline to repay a $140 million loan.
Failure to make the payment threatened to force OZ, trading in whose shares has been halted since November, into bankruptcy. It is the world's second-biggest zinc miner behind Canada's Teck Cominco and also owns, copper, gold and nickel mines.
It will continue to pursue the sale of its undeveloped Martabe gold and silver mine in Indonesia and the Golden Grove zinc and copper mine in Australia, it said.
OZ Minerals has also been pursuing other cost-reduction measures including, job and production cuts and placing its Avebury nickel mine in Tasmania on care and maintenance.
Domiciled in Australia
OZ Minerals said its outstanding debt facilities would be repaid by Minmetals upon completion of the transaction, which would solve its "present financial issues''.
"Minmetals has confirmed that it intends to continue to operate current OZ Minerals operations, which, in turn, will benefit employees and relevant local communities and also provide certainty to businesses beyond those operated by OZ Minerals,'' managing director Andrew Michelmore said in a statement on Monday.
OZ Minerals said the company would continue to be domiciled in Australia with its staff retained.
"Minmetals will provide a robust platform for OZ Minerals to realise its growth potential when market conditions permit,'' Minmetals chairman Zhou Zhongshu said in a statement.
The proposal follows Rio Tinto's $US19.5 million ($30 million) deal with major shareholder and China's state-backed company Chinalco last Thursday. Rio is confident the Federal Government will approve its tie-up with Chinalco.
OZ Minerals agrees to Chinese takeover
February 16, 2009 - 4:25PM
Debt-laden copper and gold producer OZ Minerals has recommended a $2.6 billion takeover offer from Chinese trading company Minmetals, the second Chinese resource house to come to the rescue of a debt-troubled Australian miner in less than a week, after Chinalco agreed to pump $30 billion into Rio Tinto.
Minmetals is offering 82.5 cents for each share in OZ Minerals, which is seeking to refinance $1 billion of debt by February 27, with the proposed acquisition to be completed via a scheme of arrangement.
OZ Minerals said the offer is unanimously recommended by its board in the absence of a superior one.
"The board has determined that Minmetals' cash proposal is in the best interests of OZ Minerals' shareholders and believes this is the best outcome for shareholders compared with any of the other options available to us,'' chairman Barry Cusack said in a statement.
Shares in OZ Minerals - which was formed through the merger of Oxiana and Zinifex last year - last traded at 55 cents before the company entered a voluntary suspension in December.
Onerous hurdles
The transaction is subject to regulatory approvals, completion of due diligence by Minmetals, OZ Minerals banking syndicate agreeing to extend the term of their debt arrangements and shareholder approval.
Some analysts question the willingness of the Federal Government to allow Chinese state-owned enterprises to take big stakes in domestic mining companies at a time when low commodities prices have left companies vulnerable to overseas predators with state funds.
"It looks like a decent price if all the hurdles are passed. But the hurdles look a bit onerous,'' said Tim Schroeders, portfolio manager at Pengana Capital. "It's far from a done deal.''
Asset sales continue
OZ Minerals, which has made no secret of its struggle to quickly sell off mines and refinance debt, warned on Friday it faced between $1.9 billion and $2.2 billion in impairments on underperforming mines.
The company has been trying to unload assets across Australia, South-East Asia, North America and North Africa to help it meet a February 27 deadline to repay a $140 million loan.
Failure to make the payment threatened to force OZ, trading in whose shares has been halted since November, into bankruptcy. It is the world's second-biggest zinc miner behind Canada's Teck Cominco and also owns, copper, gold and nickel mines.
It will continue to pursue the sale of its undeveloped Martabe gold and silver mine in Indonesia and the Golden Grove zinc and copper mine in Australia, it said.
OZ Minerals has also been pursuing other cost-reduction measures including, job and production cuts and placing its Avebury nickel mine in Tasmania on care and maintenance.
Domiciled in Australia
OZ Minerals said its outstanding debt facilities would be repaid by Minmetals upon completion of the transaction, which would solve its "present financial issues''.
"Minmetals has confirmed that it intends to continue to operate current OZ Minerals operations, which, in turn, will benefit employees and relevant local communities and also provide certainty to businesses beyond those operated by OZ Minerals,'' managing director Andrew Michelmore said in a statement on Monday.
OZ Minerals said the company would continue to be domiciled in Australia with its staff retained.
"Minmetals will provide a robust platform for OZ Minerals to realise its growth potential when market conditions permit,'' Minmetals chairman Zhou Zhongshu said in a statement.
The proposal follows Rio Tinto's $US19.5 million ($30 million) deal with major shareholder and China's state-backed company Chinalco last Thursday. Rio is confident the Federal Government will approve its tie-up with Chinalco.
