OZL - Oz Minerals

[oldblue]

They are mainly known as a zinc company but also has copper. Thalanga, a Copper Mine owned by Kagara Limited.
PAN is another possibility. Straits Resources Limited ?
Question really is mine in australia or overseas? Do they have a preference?

I wouldn't have thought that PAN was on their list, being a predominantly nickel miner with only minor amounts of Cu and Co from their Ni mines in the Kimberley and Kambalda regions. Neither does copper seem to figure very high in their exploration/drilling activities at present.

I still reckon that SFR is their best bet and highest priority although it now looks as if it would have to be a hostile takeover with the board of SFR refusing OZL a seat at their table.

 

[noco]

Isn't Kargara a Zinc company?

Hmmm,

Maybe they are Kargara Copper.



Not having checked on their operations I'll accept this as a slight oversight.

Kargara (KZL) are a very diversified company. I have had an interest in KZL for 4-5 years having bought and sold between $4 and $7 before the GFC. Bought back in at 38 cents. They are now hovering around 60 cents ATM. They have had a remarkable turn around to come back into the black. KZL were paying a dividend prior to the GFC. I believe their nickel deposits are high grade. Much higher than Posiden.

Business Description
Kagara Limited (KZL) is a metals exploration, development and mining company. KZL is primarily focused on zinc and copper production in North Queensland and Western Australia. KZL also holds 18.2% interest in Metallica Minerals Ltd and a 19.8% interest in Glengarry Resources NL. KZL is planning to separately list the Mungana and Red Dome projects in a new company, Mungana Goldmines.

Company Strategy
KZL?s vision is to build a diversified Australian resources group which is a world leader in the low-cost production of zinc, copper, nickel and gold, delivering superior returns to its shareholders. The medium term goal is to increase production to 70,000t of zinc, 23,000t of copper and 2,500t of nickel annually by FY12. KZL is focused on developing a new nickel mine at Lounge Lizard in Western Australia and progressing development options for the zinc resource at Admiral Bay. Kagara reported net loss of $34.49m for the half-year ended 31 December 2008. Revenue from ordinary activities were $76.91m, down 50% from the same period last year. Diluted EPS was (15.98) cents compared to 16.18 cents last year. Net operating cash flow was $39.36m compared to $61.14m last year. No dividend was declared.

DYOR.

 

[Horsetrader1]

If you look at OZL strategy then KZL does not fit the bill. copper production is less than 50,000tpa and they have a really high C1 cash cost.

PNA fit's the strategy, but too expensive. (they would need to borrow and OZL does not have a good history there)

CDU is, IMO, not worth a look at.

SFR stake was a superb corporate move, but now SFR is too expensive. IMO, SFR is a risk management move. (explain later)

OZL is on the short list for Carrapateena. This is a > 4mt copper resource as well as Gold and U308. It will cost approx $2.3B to develop as well as buying the rights. If they do not get C, then OZL could fall back onto their SFR stake. (this is what I mean by risk management)

Hope this helps. (This is the first time I have posted here -If I need to do something different pls let me know)

HT1

 

[oldblue]

Makes a lot of sense to me, Horsetrader1!

OZL are apparently not in any hurry to spend their cash but the market seems to think that something is going to happen soon. I don't believe that the recent SP strength results from some spontaneous conclusion that OZL has previously been seriously underpriced!

Let's hope that it's a hint of good news re Carrapateena.

 

[nulla nulla]

This article may give some understanding to why OZL is going up.

NEW YORK (CNNMoney.com) -- For investors still looking for clues about where the market and economy is heading, I suggest it's time to start singing Waltzing Matilda.

Aussie Aussie Aussie! Oi Oi Oi! Yes, I speak of the land down under. (Great. Now I have the Men at Work song in my head and a bizarre craving for a vegemite sandwich.) Anyway, the Australian dollar has been on fire lately and some strategists think that's a good sign for the global economy. Here's why.

Australia is a commodity-rich nation. So the surge in its currency is a reflection of the recent spike in commodity prices. But one commodity in particular is helping to boost the fortunes of Australia: copper.

Copper has many industrial uses. So copper prices, more so than the prices of more speculative commodities like gold and even oil, tend to rise and fall based on the tried-and-true economic laws of supply and demand.

Because of the metal's solid track record as a true barometer of fundamental trends, some market strategists refer to it as Dr. Copper. The joke, if you will, is that copper has a PhD in economics. (Does that mean gold just has a Bachelor's degree? I digress.)

So the increase in the Australian dollar could be a bullish sign. Boris Schlossberg, director of currency research at GFT Forex in New York, noted that the Aussie has been benefiting from more favorable news about China's economy.

"The move in the Australian dollar is a play on the global recovery, especially Chinese demand, picking up pace," Schlossberg said. "If you are a bull on the stock markets worldwide, the Aussie is your bet."

John Kosar, director of research with Asbury Research in Chicago, takes it a step further. He said the rally in the Australian dollar could be evidence that the U.S. economy may actually be picking up a bit of steam.

Kosar explained that there tends to be a strong correlation between the price of copper and transportation stocks in the United States. That's important since the performance of railroads, truckers and shippers, are often a good leading indicator for the markets and economy.

Many market observers think it's an encouraging sign when the Dow Jones Transportation Average is moving in tandem with the broader market. And lately, that has been the case.

"Everybody is stroking their chin and wondering where the U.S. stock market is headed," Kosar said. "That's why the Aussie surge is interesting. The Aussie is up because copper is up. And copper prices typically lead to a rise in transportation stocks. Connect the dots."

Still, Schlossberg said the strength in Australia has more to do with China. And that's not a bad thing. He said that right now, it seems more important to global investors for China to show continued signs of strength. If that happens, then there's a better chance that the U.S. may also stabilize.

"The U.S. is still a linchpin of the global economy but it's not the leader. It's more of a supporting actor," Schlossberg said.

Investors also can't forget Europe either. The fears about the sovereign debt crisis there are dissipating a bit.

But Michael Woolfolk, senior currency strategist with Bank of New York Mellon, said any renewed fears about the so-called PIIGS nations could lead to more concerns about how fragile the global economy is.

In other words, Woolfolk thinks the Aussie rally is just another reflection of investors once again embracing riskier assets. That may not last for much longer.

"The curious thing about the Aussie strength is that it has been more predicated on factors outside of the country than domestic factors -- which is never healthy for the long term," he said. "It's possible the Aussie could go even higher but I'm not very confident it will."

 

[mr. jeff]

Article in the fin review today discussing OZL's hoarding of cash, and what they may do with it. Normal discussion of SFR, the citadel resource etc. and they mention the commitment that OZL management have made to either using the money or returning some by the end of this year. I know this is constantly the topic of discussion here for this stock, and just wonder on thoughts now after the price rise and the potential for action.

It is interesting that no moves are made on SFR (with a massive SP now) and we are nearing the end of the year. Could they mount a share buyback or would it be special dividends, or will they just overpay for SFR and then go mad drilling ?

I note that in the 2009 annual report there were 3.1 B shares on issue. OZL has been generating good cash, pays little dividend and is exploring fairly solidly ( spend about 60M/ annum) so where does this leave us with a capital return; they would want to hold on to ~ $ 250M ? (4 years of looking)

I held OXR, then watched them fall into a hole, then bought a whole heap during 08/09 from 55c all they way up through 90c, then again at 98c not so long ago, so I have recovered my losses, but where is the loyalty to shareholders with this company?
We've supported them through their time, what about some payback!!! that billion dollars is not managements money, its ours !
Basically my rant is aimed at this:
IS there any merit in buying more shares in anticipation of a capital return on this stock ? I know the current run up is due to copper bulls and the world undersupply and the lack of copper and how we are all going to replace gold with copper etc. but is there any worth in buying OZL now !!!?

 

[quinny]

What do you think of the class action?

You can read more about it here:
http://www.fedcourt.gov.au/litigants/class_actions/NSD1443_2010.pdf
or
http://www.slatergordon.com.au/areas-of-practice/victoria/general-legal-services/class-actions/oz

At this point I am unsure if I should join this class action or not.

 

[mr. jeff]

What do you think of the class action?

You can read more about it here:
http://www.fedcourt.gov.au/litigants/class_actions/NSD1443_2010.pdf
or
http://www.slatergordon.com.au/areas-of-practice/victoria/general-legal-services/class-actions/oz

At this point I am unsure if I should join this class action or not.

Call me a lazy but getting involved in legal wrangles sounds prickly to me; there is already too much to do in every day! I guess the class action may have a point, but then if you join it you basically should sell your shares in OZL otherwise you are trying to cost yourself money!

Nevertheless, if anyone gets near to OZL management in couirt, tell them to go and buy RXM or give me my money back!
As an aside, I wonder how the production figures are stacking up this quarter, OZL really has known no better conditions, (remember they had reduced Cu production prev. quarters) with production going ahead and record breaking prices for Cu and Au. Makes their run understandable with the added bonus of a capital return at the end of the year. Ha. (wishful thinking)

 

[quinny]

Call me a lazy but getting involved in legal wrangles sounds prickly to me; there is already too much to do in every day! I guess the class action may have a point, but then if you join it you basically should sell your shares in OZL otherwise you are trying to cost yourself money!

I don't own any OZL shares at the moment. This class action is from OXR/OZL allegedly not mentioning the real company position to the market to keep the price high back in 2008. At least, that's what I can make of it.

I am going to join it and see how it goes.

 

[jancha]

I don't own any OZL shares at the moment. This class action is from OXR/OZL allegedly not mentioning the real company position to the market to keep the price high back in 2008. At least, that's what I can make of it.

I am going to join it and see how it goes.

I'm also joining this class action.
I don't hold any shares in OZL now nor will I in the future.
Had I stuck by them & bought more at 55c?
Easy in hindsight but i vowed never to trust in their management after being burnt by them in the past.

 

[YELNATS]

I'm also joining this class action.
I don't hold any shares in OZL now nor will I in the future.
Had I stuck by them & bought more at 55c?
Easy in hindsight but i vowed never to trust in their management after being burnt by them in the past.

The old management of 2008 and before (Messrs Cusack, Michelmore et al) has been banished and replaced with new management under Neil Hamilton Chairman, and Terry Burgess Managing Director/CEO who are quietly going about rebuilding the company.

I still hold the same amount of shares I did before the demise in 2008 and though they have recovered quite well, they still owe me plenty. But I'd be shooting myself in the foot if I joined this class action.

 

[adobee]

are zfx holders in on this class action also ??
I still cant believe a company that looked so strong and was pumping out such big dividends got pumped so hard..

 

[jancha]

are zfx holders in on this class action also ??
I still cant believe a company that looked so strong and was pumping out such big dividends got pumped so hard..

Adobee In answer to your question.
Only holders of OZL between & including 23rd of July 08 - 1st of December 08 & when it was OXR between 29th of Feb 08-22nd of July 08.
Exceptions are of security holders of ZFX who became sercurity holders of OXR on the 1st of July 08 by reason of the merger between ZFX & OXR.

 

[mr. jeff]

What comes from class actions, is there some sort of financial reparation or is it just a rap on the knuckles for OZL ? I assume that there is a dollar amount awarded if the action is successful which gets split between the participants ?

 

[badger41]

Having just read through the documents emailed to me(I have "joined" the class action), yes, it seems that if the action is successful, quite a bit (quarter to half) the settlement amount will go to the funders of the litigation. If I understand it, the funders are paying all Slater and Gordon's bills on a no-win no-fee basis, so they (the funders) must be pretty confident of winning a few $mill. The funders then get to keep 20-40% (or more) of the settlement amount, the rest being distributed pro-rata to eligible shareholders.

You can, it seems, choose to be represented by S&G - they'd like that as they get paid. Alternatively you can go along as a "free rider" - S&G state that in that case your settlement amount will reflect the fact you are "unfunded".

They do stress that you will "never be out of pocket", that the action is likely to take 12 months - 4 years, but the 25 or so pages of supporting documents are a bit daunting. Does anyone here with a legal background recommend signing off as a S&G client, or "opting out" or going as a "class action" member with no legal representation (ie no further S&G involvement)?

 

[jbocker]

So we get a 4c dividend and a 12c per share capital return (subject to approval). Why dont they just give a larger dividend? Is it not to raise an ongoing expectation of the dividend amount?

Share buy backs - what is the real purpose of this, is it to rid the listings of small holders?

 

[oldblue]

So we get a 4c dividend and a 12c per share capital return (subject to approval). Why dont they just give a larger dividend? Is it not to raise an ongoing expectation of the dividend amount?

Share buy backs - what is the real purpose of this, is it to rid the listings of small holders?

I would think that OZL wouldn't have the franking credits to pay a bigger divvy without shareholders paying tax.

As for the buy back and share consolidation, IMO it's a way to position the OZL stock - and shareprice - at the bigger, more "desirable" end of town nearer to the likes of BHP, RIO, Newcrest, etc. Plus it's telling the market that OZL isn't going to waste its cash on overpriced acquisitions.

 

[alexc2005]

Seems this thread hasn't been getting much love.

Can anyone explain what the buyback actually means?

Is that whats affecting the price so much? Or are people just bailing on a sinking ship?

 

[Starcraftmazter]

Seems this thread hasn't been getting much love.

Can anyone explain what the buyback actually means?

Is that whats affecting the price so much? Or are people just bailing on a sinking ship?

I'm holding OZL myself. The buyback should increase share value as far as I understand.

I have been observing the drops over the last month or so, and I think they are a result of decreasing copper prices and futures and a buildup of copper stockpiles. The value of miners reflects to a significant extent the price of the underlying commodity which they mine.

Once futures begin indicating rising prices and inventories empty out, we should see OZL climb back up.

Not 100% sure though.

Edit: Have a read of this, just found them
http://business.financialpost.com/2...vers-but-prices-still-down-10-since-february/
http://www.bloomberg.com/news/print...-47-to-149-235-tons-in-may-from-year-ago.html

 

[Mr Z]

Anyone know the story behind that phat phinger trade?

OZL course of sales -->

10:24:57 AM 11.000 1,859 20,449.00
10:24:50 AM 10.000 600 6,000.00
10:24:48 AM 1.700 1 1.70
10:24:48 AM 1.700 951 1,616.70
10:24:48 AM 1.700 262 445.40
10:24:47 AM 1.700 3 5.10
10:24:47 AM 1.700 147 249.90
10:24:47 AM 1.700 41 69.70
10:24:47 AM 1.700 16 27.20
10:24:47 AM 1.700 1,006 1,710.20
10:24:38 AM 1.700 1,678 2,852.60
10:24:37 AM 1.700 1,255 2,133.50
10:24:28 AM 1.585 517 819.45
10:24:28 AM 1.590 96 152.64
10:24:28 AM 1.590 489 777.51
10:24:27 AM 1.590 517 822.03
10:24:27 AM 1.590 65 103.35
10:24:18 AM 1.560 1,121 1,748.76
10:24:18 AM 1.560 970 1,513.20
10:24:17 AM 1.560 1,599 2,494.44
10:24:02 AM 1.545 183,478 283,473.51 XT
10:24:02 AM 11.630 308 3,582.04

Someone just toasted a lot of notes!

Ya think he/she just lost a job?

Talk about a bad hair day!!!