22-June-2020:  OZ Minerals to acquire Cassini Resources

and CZI:  Company Presentation and Webinar Details

OZL was up 2c (+0.19%) today on this news.  CZI was up +24% (from 12.5 to 15.5 cps).

OZ Minerals to acquire Cassini Resources (CZI) via a Scheme of Arrangement, consolidating its ownership of the West Musgrave Project to 100%

• Cassini to undertake an inter-conditional demerger of its Yarawindah Brook and Mount Squires assets into a new company, Caspin Resources Limited (”Caspin”) which intends to apply to list on the ASX
• Transaction is mutually beneficial:
  • OZ Minerals gains maximum optionality regarding development of the West Musgrave Project
  • Cassini shareholders receive immediate value for the West Musgrave Project and ongoing exposure to upside from future West Musgrave Project value, as well as Yarawindah Brook and Mount Squires, via Caspin
• In addition to Caspin shares, Cassini shareholders will receive consideration with an implied value of A$0.16 per share comprised of:
  • A$0.15 in the form of one new OZL share for every 68.5 CZI shares held; and
  • A$0.01 per share cash capital return to be paid out of Cassini’s existing cash balance
• Caspin may also receive additional cash payment(s) of up to A$20 million in total in the event of a potential future sale of all or a portion of OZ Minerals’ interest in West Musgrave (if such future sale is above the implied value of this Transaction)
• The A$0.16 per share, which excludes the Caspin shares, represents the following premiums to recent Cassini Resources trading:
  • A 31% premium to 1-day VWAP
  • A 31% premium to 1-month VWAP
  • A 55% premium to 3-month VWAP
• Board of Cassini has unanimously recommended the Transaction and confirmed their intention to vote in favour of all resolutions
• Major shareholders of Cassini (representing 17.4% of issued capital), including Tinci Materials, have confirmed to Cassini their intention to vote in favour of the Transaction.

--- click on link at the top for the rest of this announcement ---

I do not hold OZL or CZI shares.  My preferred copper play is currently SFR - Sandfire Resources.

21-Feb-2020:  Here is a summary of four brokers who cover OZL, with their latest calls:

• Ord Minnett:  Accumulate, TP (target price): $11.30
• Macquarie:  Outperform, TP: $11.30
• Morgans:  Hold, TP: $10.85
• Citi:  Neutral, TP: $11.00

Average TP = $11.11, so that's my new valuation for OZL, since I don't really personally follow them very closely (Sandfire - SFR - is my preferred copper exposure).  I am going to add them to my Strawman.com scorecard because I think their recent SP decline is as a direct result of the Covid-19 coronavirus fears (and associated global growth concerns which results in lower copper prices) and I think that presents an opportunity to pick up good Australian copper producers at lower prices until this all gets resolved and we move on.  OZL is currently trading at around the $10/share mark.