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OZL - Oz Minerals

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I think the "cut" for Macquarie might have been of the order of $87m, if that part of another leak is accurate.
 
Thursday should be fun.

I wonder how many questions or how much question time will be gagged or guillotined by Bazza and the boys.

Hats off to them for their timely press releases over the last few weeks about rejecting other proposals.

It would have been fantastic if they had kept us just as up-to-the-minute during the commissioning of PH and the trading halt. Maybe they hired a new PR crew, like the one that wasted millions on an expensivee Duran-Duranesque promotion when OXR and ZFX merged. Just like that stupid merger promo video, the Minmetals deal is a real BS deal for shareholders. IMHO!
 
An important note.

Shareholders who have already lodged their vote by proxy have the right to cancel their proxy and re-cast their vote at the meeting tomorrow.
 
oldblue said:
Stephen Bartholomeusz is always worth reading.

Here's his latest.
Click to expand...

I like his writing much better than those by Robert Gottliebsen. Reporting the facts and provides good analysis/comment of the situation without judgement. This is how journalist should write I think. The recent articles from R.Gottliebsen are all about telling what the board of OZ Minerals should do. Especially the last two articles sound so desperate that I was thinking he either has a big holding in OZL or he is behind the RBC or Mac proposals.

S. Bartholomeusz points out that the current debt extension is subjected to the Minmetals offer still valid. So CBA has said they will re-evaluate the situation, how about the other two banks?

So there were two proposals, the first one is about RBC wants a piece of the action but not much for existing shareholders. The second proposal is still in the making the night before the vote (Indeed, Macquarie just called it off because they can't get the deal ready).

The article said OZL board did try to auction off the assets at that time. The banks want to pull the plug and no one shows up in the auction room. Minmetals offer was the only one around at that time.

A previous article in BusinessSpectator mentioned that it costs OZL 95M in fees just to extend the bank facilities. And if Minmetals deal didn't go through, it will incur
"...for OZ its break fee of $US12.06 million, representing 1 per cent of Minmetals' $1.206 billion offer, is relatively small as far as break fees go. But what does add up are the bank facility fees that OZ would have to pay if the deal was called off and a possible $US105 million if a default on its convertible bonds is triggered. Obviously OZ would also have a principal $1.2 billion of debt to refinance as well after June 30."

That sounds like by calling off the Minmetal deal the company might incur more than 200M of fees (USD12M breakfee is small, probably another AUD95M for bank facilities extension, and then possibility of USD105M if no deal comes true and they default on their bonds). I can understand why the board want absolute certainty in any proposal. And why it is hard for other proposals to stack up... go blame the banks on this.
 
OZ Minerals shareholders approve Minmetals deal

Over 90% of OZ Minerals Limited (OZL) shareholders approved Minmetals offer to buy $1.386 billion worth of the Australian miners assets. On Thursday afternoon, the Chinese company said it would complete the deal within one week and set up a new Australian company named Minerals and Mining Group Limited.

Earlier in the day OZ Minerals reaffirmed its commitment to the Minmetals deal in the face of speculation of differing recapitalisation proposals. At the same time Minmetals had increased its offer for the Australian company by 15%, or US$180 million.

At the time Minmetals said the increased offer was subject to shareholder approval. In turn, OZ Minerals urged shareholders to vote in favour of the deal at the company’s AGM, which got underway before lunch today.

OZ Minerals said the updated offer fell in the lower end of the range given by the ‘Independent Expert’s’ range of US$1.385 billion to US$1.6 billion, however noted that incremental cost savings relative to a recapitalisation proposal such as underwriting fees, break fees and corporate overhead costs, placed the proposal at the upper end of that stated value of the company.

OZ Minerals chairman Barry Cusack said he was pleased with the updated offer.

"Since February 2009, Minmetals has been the only entity that has offered OZ Minerals a complete solution to its refinancing issues,” Mr Cusack said.

The company said the deal from Minmetals was the only one to satisfy certain key criteria, including being a binding agreement and satisfying regulatory conditions.

The company added that the deal was the only one that allowed shareholders to retain control of Prominent Hill.

OZ Minerals said had the deal not received shareholder approval Minmetals would have considered its right to terminate the deal, which would have placed the Australian miner in a difficult position, as it needs to refinance debt.

OZ Minerals shares were halted at 89c


http://www.egoli.com.au/news/post/OZ-Minerals-touts-Minmetals-deal.aspx
 

So as an average mum and dad trader what does this mean for shareholders? Will the offer be increased to shareholders at all as currently as we all know its trading beyond what Minmetals has offered...
 
amazme said:
So as an average mum and dad trader what does this mean for shareholders? Will the offer be increased to shareholders at all as currently as we all know its trading beyond what Minmetals has offered...
Click to expand...

There's no offer to shareholders.

Minmetals is buying assets from OZL which leaves that company as pretty much Prominent Hill mine plus cash, after paying back the banks. Minmetals upped their offered price by 15% which increases OZL's cash, a lot of which will be required for the ongoing development of Prominent Hill.

It's up to the market now to decide whether OZL shares are worth more, less or the same as the 90c approx that they have traded at recently.

 

I would expect the SP to rise due to OZL now being debt free, cashed up and also due to the fact that the 15% increase was announced at the last minute, but you never know. I have held this dog of a stock for some time now so here's hoping.
 
From the ASX site
"OZ MINERALS LIMITED (OZL)
OZ Minerals Limited is Australia’s third largest diversified mining company, it's the world’s second largest producer of zinc, a substantial producer of copper, lead, gold and silver and is also growing its production of nickel. OZ Minerals was formed in 2008 through a merger of Australian based, international mining companies Oxiana Limited and Zinifex Limited."

Sounded impressive then, what is OZL going to quote now...?
 
Don't worry, Spin doctors, sorry, PR people can come up with some wonderful descriptions when paid enough!

But seriously, Prominent Hill is a pretty good asset of considerable size and with potential to be a lot better. The biggest downside for OZL may be the loss of diversification that the other mines provided. PH is a very big bet on the price of copper, with gold a relatively minor contributor.
 
Opened @ 1.05, currently up 14% in morning trade with a good buy to sell ratio of 2:1 respectively. Copper up 4% over night.
 
LeeTV said:
Opened @ 1.05, currently up 14% in morning trade with a good buy to sell ratio of 2:1 respectively. Copper up 4% over night.
Click to expand...

I got out today after buying in at $1.00 in Oct last year. So i've broken even after a crazy 8 month ride. Im running as far away as possible from this stock. Lots learned for me!!
 
amazme said:
I got out today after buying in at $1.00 in Oct last year. So i've broken even after a crazy 8 month ride. Im running as far away as possible from this stock. Lots learned for me!!
Click to expand...
I don't blame you and considered doing so myself but will see how this pans out. Debt free and copper prices on the rise hopefully they don't screw this up, again.
 
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