OZ Minerals Limited   

Renewal of Musgrave Province Tenement & Avanco compulsory acquisition in progress:OZ Minerals Limited (ASX: OZL) had announced the renewal of Musgrave Province Tenement. This is one of the four granted tenements, which makes Musgrave Alcurra Tieyon Project and enables OZL to earn up to 75% of the project for $7.5 million. Further, Eloise Project is the joint venture between OZL and Minotaur; and OZL had completed $5 million stage 1 and stage 2 is underway. OZL had recently announced the expansion of drilling campaign along Jericho “J1” & “J2 North” copper system at Eloise JV, Cloncurry. Additionally, OZL’s cash balance remained strong at $454 million at the end of the second quarter, after making payments to Avanco shareholders, ongoing Carrapateena investment, and tax payments for 2017 and 2018. In addition, Avanco’s compulsory acquisition is in progress, its integration is underway, and the strategic planning has commenced. Moreover, the group has been able to enhance mine lives of its assets including Carapateena and Prominent Hill.
 
In June 2018, OZL also inked an earn-in agreement with Mineral Prospektering i Sverige (MPS) with regards to the exploration of Iron Oxide Copper-Gold (IOCG) mineralisation in the Norrbotten district of northern Sweden.
 
Looking at the copper commodity which OZL deals in, the requirement under various industries such as transport and electricity, has come up while the prices have been on a downtrend given the global level volatility and trade war fears. On the other hand, there might be some support from supply front that may help OZL.
 
Lately, Norges Bank has ceased to be a substantial holder of the group. Meanwhile, OZL stock has fallen 2.50% in three months as on August 02, 2018 while it has risen 11.4% in last one year. It is trading at a P/E of 12.11x; however, the stock looks “Expensive” at the current price of $ 9.400 given the run-up (124% in last five years) and trading levels.

 
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