Oxiana is one of many shares that came up to my amateur attention a while ago. It came as a value company, with low P/E ratio (just under 8), high EPS growth, and 13.8% ROE.
However, I was not really looking into it, as some analysts (not sure who they are, I saw this detail on Yahoo finance) said that the share price trend is bearish (it was $3.01).
I came back after a few days, and found that the share price was actually down to $2.68. It seems quite cheap.. (or will it go down further?)
There was a quite interesting article two days ago about oxiana in The Australian. Well, it was not just about oxiana, it was also about another miners.
The article was: Mine exports set for huge surge
March 10, 2007
OXIANA managing director Owen Hegarty is a man in a hurry. He sees the construction of his $775 million Prominent Hill gold mine 650km from Adelaide as a race.
The rush is on, he says, to make hay while the sun is shining.
"In our view it is very clear that this is a long period of economic expansion and that is just fantastic for this country," Hegarty says.
"All the hard work is starting to bear fruit now. Prominent Hill is a standout in respect of timing.
"Nothing in this industry is ever simple or easy, but as long as you have the will. But it is a race that never finishes. Those who think the boom is over should get out more."
Hegarty plans for Prominent Hill to start up in the third quarter of 2008, producing 115,000 ounces of gold and 104,000 tonnes of copper. It was only discovered in 2001.
Hegarty's eagerness is shared throughout the mining industry. There is a sense that after three years of waiting, the pay-off from $45 billion of investment is about to roll in, bringing super profits to shareholders and spreading growth through the economy.
For the full story, please click here
Oxiana produces gold and copper from two mines in Laos and studies are also underway to expand both these operations. The Golden Grove zinc/copper mine in West Australia was purchased in mid 2005 while the Prominent Hill copper/gold project in South Australia is targeting a 2008 start-up. An aggressive exploration program is underway at all the above as well as in China and Thailand.
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