Australian (ASX) Stock Market Forum

OZL - Oz Minerals

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tinhat said:
Oz Minerals will be bidding at auction for a Romanian open pit copper mine. The auction is in Bucharest and is scheduled for monday 26 March 2012. Mine producing 11,000 tonnes per year (2008 figure from wikipedia).

http://en.wikipedia.org/wiki/Roşia_Poieni_copper_mine
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Decided not to bid for this mine, and share price has gone up slightly since.
What do people think of the long term prospects of OZL? It's cashed up, but that Prominent Hill project is their only resource and the Sandfire rumour never seems to eventuate....
 
There's a bit of a divergence opening up between the OZL share price (falling) and the MACD (rising since late March) and the RSI (also trending up since late March).
 
Boy... how long does it take the ASX to issue a speeding ticket these days?

OZL is only down 10% on a green day and it doesn't deserve a please explain?

I can't think of any event that would warrant such a move... sure gold fell a bit last night but most copper stocks are pretty normal.

May be a class action decision? :confused:

Edit - oops - it's already concluded right?
 
What is the problem!?
They should drop SFR and buy NST, SLR or TRY.
OR all of em if they have enough cash.
 
notting said:
No. It's high frequency trading according to the boss!
Nothing to do with lower production and higher costs announced yesterday :rolleyes:
Vision!
Click to expand...

I didn't know whether to laugh or cry when I read that...

I mean, he should have just blamed selling in general. If people don't sell, share prices can't fall...

Low freq selling is just as bad.
 
What would the likely implications be for OZL's share price if this acquisition went ahead? Thanks for any comments.


OZ Minerals, Carlyle still in Rio’s Northparkes auction

Rio Tinto’s efforts to sell its interests in NSW-based copper-goldmine Northparkes are nearing the pointy end, with OZ Minerals and private equity firm The Carlyle Group said to be the frontrunners in the process.

MMG and Glencore Xstrata are also in the final furlong of the Macquarie Capital-run auction.

RBC Capital Markets has labelled Northparkes an “ideal purchase at the right price” for OZ Minerals, as it meets the company’s investment criteria.

Northparkes generated a $US144 million profit on $US453 million revenue last year, and is expected to fetch at least $US800 million ($869 million).

Buying the mine would use up JPMorgan-advised OZ Minerals’ $US660 million cash pile and more. One theory is that OZ could sell its 18.9 per cent stake in Sandfire Resources to help fund the transaction.

Private equity firms, such as Carlyle, have been considering whether they want to start playing in the resource sector given the amount of assets for sale and the small number of buyers.
 
OZL had a production outlook update this morning. I read the announcement but didn't have the time to compare with market consensus.

Well the market didn't like it one bit and sold this down over 30% at one stage, printing a low of $2.08 from a close of $3.09 yesterday. Then it climbed all the way back up to $2.80 (which is 35% higher than the low).

We all know OZL is a dog but this price action was pure madness.
 
skyQuake said:
Couldn't quite get to a gap fill but it was mighty close after all those broker upgrades.

I love Decembers
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Crazy isn't it...

Shorting this at 296. Wouldn't surprise me if it closes in the red.

Nothing surprise me anymore...
 
skc said:
OZL had a production outlook update this morning. I read the announcement but didn't have the time to compare with market consensus.
Click to expand...

Just had a look out of interest.
Don't know if its just me being overwhelmed, but it feels like you need to just about be an expert to get through those 60-odd pages :eek:

Looks like they are confirming hitting guidance production?
 
skc said:
Crazy isn't it...

Shorting this at 296. Wouldn't surprise me if it closes in the red.

Nothing surprise me anymore...
Click to expand...

Ended up being pretty boring for the rest of the day..
Did you manage to cover at ~291?

Will be interesting to see if the volatility resumes on the open tomorrow, or if it has found a bit more stability at this level, upon which it can resume its gradual downtrend over the next few months ;)
 
VSntchr said:
Ended up being pretty boring for the rest of the day..
Did you manage to cover at ~291?

Will be interesting to see if the volatility resumes on the open tomorrow, or if it has found a bit more stability at this level, upon which it can resume its gradual downtrend over the next few months ;)
Click to expand...

Covered at 289.6667.

Kept looking at it all afternoon but decided against trading it. I was not having a good day...
 
The value destruction of this thing is amazing. Didn't they do a 10 for 1 consolidation not long ago?
 
Volume is diminishing as it labors to where it fell off.
Went nowhere from 12:40pm till the close with volume disappearing whilst the market recovered somewhat.
A little bearish after a good 10% bounce.
I took a little short at the end and will be watching for what it does at 2.46 and flipping it if looks strong again there, if it falls below that - staying bearish.
 
JTLP said:
The value destruction of this thing is amazing. Didn't they do a 10 for 1 consolidation not long ago?
Click to expand...

I assume if a company has the word "Minerals" in it that they don't do anything but spend shareholders money on stupid stuff. It's highly accurate imo.
 

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