OXR

OZ MINERALS (OZM) is well placed to enter the ranks of the global diversified base metal miners from Australian Stockmarket analyst Macquarie Research Equities.

Oxiana (OXR)/Zinifex(ZFX) – Say Hello to OZ MINERALS (OZM)

Australian Resources Weekly provided by Australian market analyst UBS.

Impact of Apache explosion

Apache gas pipeline explosion event:

MRE maintained an outperform recommendation on both ZFX and OXR, with a 12 month price target of A$12.77 and A$4.00 respectively from Australian Stockmarket analyst Macquarie Research Equities.

Oxiana (OxR)/ Zinifex (ZFX): The Arbs Are Nervous

Here is a review on the sector resources provided by Australian stockmarket analyst Macquarie Research Equities.

How High can Resources Go? A Review of the Sector

Oxiana (OXR) has a Neutral stock recommendation and a share price target of $4.00 from Australian share analyst Macquarie Research Equities.

OXR: Trading Idea - Oxiana

Oxiana (OXR) - Neutral
Current Price: $3.43
Target Price: $4.00 (~16.61% Upside)
P/E: 14.3 X
Div Yield: 2.4% (100% Franked)

Oxiana (OXR) Technicals:

Oxiana (OXR) has a maintained $4.00 share price target from Australian sharemarket analyst Macquarie Research Equities.

Oxiana (OXR): Ox Still Prominent

Oxiana (OXR) rallied strongly this morning, up 3.5% following the release of their 1Q08 operating results. The company delivered a stronger than expected quarter for copper and gold, according to Macquarie Research Equities (MRE), however delivered a lower production number for zinc. This is MRE’s view...

Australian stockmarket analyst Citi Investment Research (CIR) have provided some guidance to the mining companies Oxiana and Zinifex. Both Oxiana have the potential to fill the void left by the disappearance of MIM and WMR. However, combining the two fills the void in one step. The combined enterprise value of the companies is ~$11bn and with a potential EBITDA of $2bn in FY09e, the current EV equates to an EV/EBITDA multiple of ~5.5x. Merging the two companies would result in production of ~750kt Zn, ~200kt Cu, 375koz Au, 80kt Pb and 10Moz of Silver by FY10e. This would make the company comparable to the old WMR and only a coal business away from being a Teck Cominco. EBITDA would be ~$2bn in FY09e with NPAT of ~$1.3bn. However, once CIR’s long-term prices kick in, prospective NPAT drops to ~$500m. Post the smelter spin-out, the cash position of a merged entity would be ~$4.4bn by the end of FY08e, with minimal debt. With ZFX still to appoint a new CEO, this could be the opportunity for OXR to show their wares. A beauty parade potentially awaits. Interestingly, Xstrata doubled in size with the $4.9bn takeover of MIM in 2003. Merging ZFX/OXR would essentially result in a similar size company, with enough cash to keep on growing through further deals. However, mine life still missing, the key risk would be the same risk currently experienced by both companies - the shortage of long mine-life assets. However, a cash balance of $4.4bn could go a long way to solving that problem. Given the temptations of a highly leveraged business and bank full of cash, OXR will not be the only company interested in ZFX post smelter spin out.