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OSH $9.00

asset sales!

  1. paradigmshift

    2,944 Posts.
    Maybe OSH is worth purchasing as cloes to $1 as you can - they are due to announce sale of pogera interests in the next couple of weeks.

    Hopefully some of the funds will go to pay for the Chevron Assets. Gearing is due to be mid teens post Chevron and Asset sales.

    Does anyone think OSH has a lot of steam left in it or has it had its best run.

    I have accessed some more capital and would like to play a fairly safe bet.

    It will be interesting to see what dividend they pay at the end of the year!

    Come on cutie, show us the money OSH.

    Durban Roodepoort Deep (DRD) has emerged as a short-listed bidder for a stake in the Porgera gold mine in Papua New Guinea as the South African group continues its push for a 400,000 oz-per-year "Australasian" division.

    DRD is chasing Oil Search's (OSH) 20% stake in the Porgera and Misima mines – assets expected to fetch more than US$50 million.

    The natural buyer is Canada's Placer Dome, majority owner and operator of both mines.

    But industry sources have confirmed that DRD is also on Oil Search's short-list as the energy group prepares to wrap up a sale in the next few weeks.

    Earlier this week DRD said that it would use US$43 million raised from issuing new shares to acquire an asset in the Australasian region.

    Speculation this week has centred on a possible bid for Emperor Mines (EMP), in which DRD owns 19.8% following its buy-out last year of Robert Friedland's Ivanhoe group.

    But Emperor said yesterday that it is unaware of any takeover proposal involving DRD.

    The other problem with the Emperor theory is that the Fijian gold miner now looks a tad expensive following its surging share price in recent weeks.

    Emperor is valued at $90 million – roughly 70% more than a month ago.

    Some insiders believe that, if DRD is interested in taking out Emperor it would have moved earlier in the year when the stock was much cheaper.

    Instead, DRD is looking elsewhere in the Pacific "Rim of Fire", specifically PNG where it already runs the 80,000ozpa Tolukuma mine.

    A bid for a minority stake in the blue chip 680,000ozpa Porgera mine may look a bit out of character for DRD, described by one of its supporters as a "junk yard dog".

    Its modus operandi is to pick up unloved orebodies and reinvigorate them on the cheap.

    But perhaps DRD is looking to ease its way into Porgera now, and then buy out Placer once the mature operation starts looking too hard for the Canadian group.

    Misima, meanwhile, is due to finish mining early next year. The plant and equipment at the site are currently for sale.

    DRD's interest in the two PNG assets comes as Oil Search confirmed this week that a deal is imminent.

    "We've had material interest from a number of parties and we are in the final stages of negotiations with the bidders," Oil Search managing director Peter Botten told Dow Jones Newswires yesterday.

    "We hope to announce something in the short-term, and to have completed the deal materially by the end of the year," he added.

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