OZL - Oz Minerals
- Thread starter LeeTV
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im looking to buy into Oz, coz now it will be a near pure copper play from one of the largest on stream high grade copper mines in the world and its in our backyard.
Wouldnt be suprised if BHP made a tilt in the near future as it is just down the road and could provide synergies until opympic dam comes on stream and Oz has divested all the other bits
Wouldnt be suprised if BHP made a tilt in the near future as it is just down the road and could provide synergies until opympic dam comes on stream and Oz has divested all the other bits
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I wouldn't count on BHP having a go as they don't consider Prominent Hill a 'Tier 1' asset.
http://www.businessspectator.com.au...-BHP-cools-OZ-talk-RQUXC?opendocument&src=rss
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Agreed, I think you should definitely look a little further rusty...barrick, xstrata, newcrest, and thats if there's good evidence that Prominent Hill is working and has future potential.
Given the 50%+ copper cons plus minor gold creds that are coming out of there at the moment, most smelters would die for that material (and low impurties)...so it all looks good so far. Depends whether some company wants to look at it as a base metal mine or a multi million ounce gold deposit.
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Time has come to start buying OZL
After today's news.... OZL MINERALS DEBT FREE, I think it's time that many managed funds and investors will start buying OZL.... trend is up from here IMHO.....base and precious metals prices are another story all together....we are talking a aussie company story that went totally wrong to a recovery......
OZ Minerals retires debt after completing sale to Minmetals
June 17 2009, 7:10PM
OZ Minerals Ltd has wiped out its crippling $1 billion plus debt after settling its major asset sale to China Minmetals Non-Ferrous Metals Co Ltd (Minmetals).
The miner now has a substantial kitty of more than $700 million, soon to be bolstered to $1 billion, to help restart exploration projects.
OZ Minerals was once Australia's third largest diversified miner but the sale of most of its assets to Minmetals leaves it a sole-asset company, focused on the Prominent Hill gold and copper mine in South Australia.
The company confirmed on Wednesday the divestment of the assets to Minmetals had raised $US1.354 billion ($A1.69 billion) after settlement adjustments.
OZ Minerals had been teetering on the brink of administration since it ran into trouble refinancing about $1.2 billion in debt facilities late last year.
But its financiers extended the expiry date of debt facilities several times to allow the Minmetals deal to proceed.
OZ Minerals chairman Barry Cusack said the completion of the deal meant all the company's bank loan facilities had been repaid.
The miner was left with a cash balance of more than $US575 million ($A727 million).
This is expected to be bolstered by a further $US211 million ($A264.8 million) from the cash sale of its Martabe gold project in Indonesia to another Chinese party, China Sci-Tech Holdings Ltd, pending the approval of that company's shareholders.
"We have now retired all of our bank loan facilities, which has been a critical issue for the company for more than six months," Mr Cusack said.
"OZ Minerals is now smaller and more focused in terms of its operations but is in a significantly enhanced financial position.
"We have ... a rejuvenated balance sheet with a substantial cash balance and we are now also beginning to accrue revenue from the Prominent Hill mine."
The miner says it will now focus on restarting exploration projects and development studies that were suspended last year.
The company says it has $US105 million ($A131.8 million) of convertible bonds and fully secured bank letters of credit of about $A20 million principally to meet its mining regulatory obligations.
Now the the sale has been completed, Andrew Michelmore has resigned as managing director, and will head up Minmetals in Australia.
Bruce Loveday is OZ Minerals' acting chief executive until Terry Burgess commences the job in early August.
State One Stockbroking resource analyst Sam Berridge told AAP that it was quite likely that OZ Minerals would pursue acquisitions, but could face stiff competition from other cashed-up miners and Chinese parties.
"OZ is not alone in having a fair bit of cash in the kitty and they're going to be competing with the Chinese for securing top-tier assets," Mr Berridge said.
"Metal prices are still a long way below where they were earlier last year, therefore you'd assume that base metal assets should be cheap.
"But what I'm hearing ... is that asset prices haven't really come back that far.
"People are probably still unrealistic about the value of less than optimal projects that could be developed at some point.
"It has to be reasonable otherwise it ruins the economics of the project.
"OZ will probably run into the problem."
Prominent Hill began producing in February.
OZ Minerals shares closed up 5.5 cents at 96.5 cents on Wednesday.
__________________
After today's news.... OZL MINERALS DEBT FREE, I think it's time that many managed funds and investors will start buying OZL.... trend is up from here IMHO.....base and precious metals prices are another story all together....we are talking a aussie company story that went totally wrong to a recovery......
OZ Minerals retires debt after completing sale to Minmetals
June 17 2009, 7:10PM
OZ Minerals Ltd has wiped out its crippling $1 billion plus debt after settling its major asset sale to China Minmetals Non-Ferrous Metals Co Ltd (Minmetals).
The miner now has a substantial kitty of more than $700 million, soon to be bolstered to $1 billion, to help restart exploration projects.
OZ Minerals was once Australia's third largest diversified miner but the sale of most of its assets to Minmetals leaves it a sole-asset company, focused on the Prominent Hill gold and copper mine in South Australia.
The company confirmed on Wednesday the divestment of the assets to Minmetals had raised $US1.354 billion ($A1.69 billion) after settlement adjustments.
OZ Minerals had been teetering on the brink of administration since it ran into trouble refinancing about $1.2 billion in debt facilities late last year.
But its financiers extended the expiry date of debt facilities several times to allow the Minmetals deal to proceed.
OZ Minerals chairman Barry Cusack said the completion of the deal meant all the company's bank loan facilities had been repaid.
The miner was left with a cash balance of more than $US575 million ($A727 million).
This is expected to be bolstered by a further $US211 million ($A264.8 million) from the cash sale of its Martabe gold project in Indonesia to another Chinese party, China Sci-Tech Holdings Ltd, pending the approval of that company's shareholders.
"We have now retired all of our bank loan facilities, which has been a critical issue for the company for more than six months," Mr Cusack said.
"OZ Minerals is now smaller and more focused in terms of its operations but is in a significantly enhanced financial position.
"We have ... a rejuvenated balance sheet with a substantial cash balance and we are now also beginning to accrue revenue from the Prominent Hill mine."
The miner says it will now focus on restarting exploration projects and development studies that were suspended last year.
The company says it has $US105 million ($A131.8 million) of convertible bonds and fully secured bank letters of credit of about $A20 million principally to meet its mining regulatory obligations.
Now the the sale has been completed, Andrew Michelmore has resigned as managing director, and will head up Minmetals in Australia.
Bruce Loveday is OZ Minerals' acting chief executive until Terry Burgess commences the job in early August.
State One Stockbroking resource analyst Sam Berridge told AAP that it was quite likely that OZ Minerals would pursue acquisitions, but could face stiff competition from other cashed-up miners and Chinese parties.
"OZ is not alone in having a fair bit of cash in the kitty and they're going to be competing with the Chinese for securing top-tier assets," Mr Berridge said.
"Metal prices are still a long way below where they were earlier last year, therefore you'd assume that base metal assets should be cheap.
"But what I'm hearing ... is that asset prices haven't really come back that far.
"People are probably still unrealistic about the value of less than optimal projects that could be developed at some point.
"It has to be reasonable otherwise it ruins the economics of the project.
"OZ will probably run into the problem."
Prominent Hill began producing in February.
OZ Minerals shares closed up 5.5 cents at 96.5 cents on Wednesday.
__________________
Can someone please explain these after hour trades tia 
04:56:35 PM 1.080 80,363 86,792.04 XTSXOS
04:50:48 PM 1.080 321,451 347,167.08 XTSXOS
04:13:14 PM 1.105 1,449,272 1,601,445.56 XTOS
04:10:56 PM 1.090 22,459 24,480.31
04:10:56 PM 1.090 11,933 13,006.97
04:56:35 PM 1.080 80,363 86,792.04 XTSXOS
04:50:48 PM 1.080 321,451 347,167.08 XTSXOS
04:13:14 PM 1.105 1,449,272 1,601,445.56 XTOS
04:10:56 PM 1.090 22,459 24,480.31
04:10:56 PM 1.090 11,933 13,006.97
Hey LeeTV
Care to share what you found out from the HC site??
This is to generate more than 100 characters..
Cheers,
Buster
Care to share what you found out from the HC site??
This is to generate more than 100 characters..
Cheers,
Buster
xt crossing
sx portfolio special crossing
os overseas trade
The above after trades are called "Portfolio Special Crossing" in short: These are brokers making adjustments on trades which took place in the day,and have to be made transparent to the market, so usually done after hours.
bigdog
Retired many years ago
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http://business.smh.com.au/business/prominent-hill-a-takeover-target-20090827-f17q.html
Prominent Hill a takeover target
Barry FitzGerald
August 28, 2009
THE OZ Minerals chief executive of less than a month, Terry Burgess, hopes he gets the chance to grow the now cashed-up and debt free copper/gold producer before it becomes the subject of a takeover bid.
While no group has expressed ''any recent interest'' in bidding for the group, Mr Burgess is aware numerous potential bidders had the remaining operating asset, the Prominent Hill mine in South Australia, under the microscope when OZ was going through its debt refinancing woes.
The woes are a thing of the past, but OZ's June half result, published yesterday, showed the scars left behind by the drastic debt restructuring that culminated in $US1.59 billion ($1.92 billion) in operating asset sales to China's Minmetals and China Sci-Tech.
The sales enabled OZ to pay off all bank debt and leave it with $1 billion in cash at the end of June. But a loss on the asset sales dragged the group to a net loss of $580.7 million for the June half. The result is not comparable with the previous corresponding because of the huge changes in the underlying business.
OZ's preferred focus was on the performance of its remaining operating asset, the new Prominent Hill mine. Its contribution at the earnings-before-interest-and-tax level for the two months it was deemed to no longer be a development project was $19.4 million on revenue of $89.6 million. The result would have been better but for a $16.9 million foreign exchange loss on a now cleared bridging loan.
Mr Burgess said he was now working on a new strategy for OZ that he would take to the board towards the end of October. He said OZ would be in a position to give the market direction on the strategy by the end of the year.
''We need to identify which commodities we are going to be active in and which regional areas in the world we are going to be looking at.''
He said OZ was ''hoping that we will be given the opportunity to develop this project [Prominent Hill] and and grow the business in the coming months'' before any possible takeover approaches were made.
OZ plans to spend about $25 million on exploration work for the rest of this year.
Prominent Hill a takeover target
Barry FitzGerald
August 28, 2009
THE OZ Minerals chief executive of less than a month, Terry Burgess, hopes he gets the chance to grow the now cashed-up and debt free copper/gold producer before it becomes the subject of a takeover bid.
While no group has expressed ''any recent interest'' in bidding for the group, Mr Burgess is aware numerous potential bidders had the remaining operating asset, the Prominent Hill mine in South Australia, under the microscope when OZ was going through its debt refinancing woes.
The woes are a thing of the past, but OZ's June half result, published yesterday, showed the scars left behind by the drastic debt restructuring that culminated in $US1.59 billion ($1.92 billion) in operating asset sales to China's Minmetals and China Sci-Tech.
The sales enabled OZ to pay off all bank debt and leave it with $1 billion in cash at the end of June. But a loss on the asset sales dragged the group to a net loss of $580.7 million for the June half. The result is not comparable with the previous corresponding because of the huge changes in the underlying business.
OZ's preferred focus was on the performance of its remaining operating asset, the new Prominent Hill mine. Its contribution at the earnings-before-interest-and-tax level for the two months it was deemed to no longer be a development project was $19.4 million on revenue of $89.6 million. The result would have been better but for a $16.9 million foreign exchange loss on a now cleared bridging loan.
Mr Burgess said he was now working on a new strategy for OZ that he would take to the board towards the end of October. He said OZ would be in a position to give the market direction on the strategy by the end of the year.
''We need to identify which commodities we are going to be active in and which regional areas in the world we are going to be looking at.''
He said OZ was ''hoping that we will be given the opportunity to develop this project [Prominent Hill] and and grow the business in the coming months'' before any possible takeover approaches were made.
OZ plans to spend about $25 million on exploration work for the rest of this year.
I think it's fair to say that the Prominent Hill mine has been under development for several years and in the planning stages for some time before that. It's a big opencast mine in anyone's language and these things don't happen overnight.
I don't think that OZL's prospects should be assessed too closely on past events - the assets are completely different in that PH is now producing whereas it wasn't previously and all the other mines have been sold. Management, of course, is also changed!
Investing in OZL becomes a pretty straight bet on the price of copper and, to a lesser extent, the price of gold with the added chance of a bid being made for the company at some stage.
Disc: Holding a few.
For a much better take on OZL and its prospects than anything I could construct, take a look at this recent article by Stephen Bartholomeusz.
http://www.businessspectator.com.au...-for-Oz-pd20090827-VBACF?OpenDocument&src=kgb
http://www.businessspectator.com.au...-for-Oz-pd20090827-VBACF?OpenDocument&src=kgb
Ozl generally pay dividends in September and early April, so IMHO I should imagine we may see a dividend in April 2010. None this year because of the bad result they have had during the past 12 months, however, since unloading several mines to Minsmetal, they should start tp pick up their profitability in this next six montths with Prominent Hill now in production with copper and some 60,000 ozs of gold in the next 12 months.
Personally, I don't expect to see much in the way of dividends from OZL for a while, perhaps a nominal few cents to keep shareholders interested.
"The result did reveal a previously over-looked asset within the group, another consolation prize created by the crisis. Oz Minerals has $771 million of tax losses that will shelter future earnings. While it will continue to book an accounting charge for tax, it won’t actually pay any for some time to come, boosting its free cash flows.
That also means it probably isn’t going to be economically sensible to pay dividends, which would be unfranked. That may explain why the group’s shares fell sharply on the result. There had been some expectation, given the amount of cash Oz Minerals is holding, that it might pay a small dividend. It doesn’t however, have any retained earnings. "
- from Stephen Bartholomeusz' recent article.
"The result did reveal a previously over-looked asset within the group, another consolation prize created by the crisis. Oz Minerals has $771 million of tax losses that will shelter future earnings. While it will continue to book an accounting charge for tax, it won’t actually pay any for some time to come, boosting its free cash flows.
That also means it probably isn’t going to be economically sensible to pay dividends, which would be unfranked. That may explain why the group’s shares fell sharply on the result. There had been some expectation, given the amount of cash Oz Minerals is holding, that it might pay a small dividend. It doesn’t however, have any retained earnings. "
- from Stephen Bartholomeusz' recent article.
Thanks to the rapid rise in the Copper price this year, Prominent Hill is now worth a lot more then what is was 3, 6 and 12 months ago. Oz's results last week were moderate, but at these elevated Copper and Gold prices, Prominent Hill offers vast upside. All we need is the AUD to ease back below 0.80.
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I honestly don't value this company very much.
I think there are better plays on the market right now, particularly within the copper realm (Aditya Birla Minerals-ABY) which I currently don't hold.
I think, although this company is cashed up, there will still be quite a bit of "transitioning" to occur, and ramping up of Prominent Hill.
Morgan Stanley Smith Barney currenlty has a Sell Speculative Risk with a 12 month target of $0.83.
Don't hate me. This is just me opinion, and being a beginner I could very well be wrong.
I think there are better plays on the market right now, particularly within the copper realm (Aditya Birla Minerals-ABY) which I currently don't hold.
I think, although this company is cashed up, there will still be quite a bit of "transitioning" to occur, and ramping up of Prominent Hill.
Morgan Stanley Smith Barney currenlty has a Sell Speculative Risk with a 12 month target of $0.83.
Don't hate me. This is just me opinion, and being a beginner I could very well be wrong.
No problem, 4f.
You could very well be right. OZL is still a high risk play - one mine, admittedly a very big opencast one; one metal, admittedly an important one and ok, a bit of gold on the side; new management, untried in this particular role, admittedly the old one wasn't perfect!
I retain a small interest but I'm not adding to it at this point.
You could very well be right. OZL is still a high risk play - one mine, admittedly a very big opencast one; one metal, admittedly an important one and ok, a bit of gold on the side; new management, untried in this particular role, admittedly the old one wasn't perfect!
I retain a small interest but I'm not adding to it at this point.
