OXR oxiana limited

weakness ahead?

  1. Yak
    13,672 Posts.
    Macca's view as of today

    Oxiana (OXR) Recommendation change
    Oxiana is trading at a 38% premium to our valuation of $0.55. We agree that the Sepon region
    has very good exploration upside and a plant expansion is almost a certainty. However, a
    significant portion of this upside is now reflected in the share price.
    In addition, the Khanong copper project represents just over 50% the total value of the
    company. Once funding has been finalised and this project reaches the development stage,
    we believe there is a risk that the premium to our valuation could be eroded as copper
    companies seldom trade at a premium (in particular those with debt).
    We maintain our short term Hold recommendation. We have downgraded our long term
    recommendation to a Hold.
 
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