Since posting a high of $10.70 on June 12th, shares of OZL have dropped over 12% and reached a 2-month low of $9.35 in early trade today.
As illustrated in the chart below, the price of High Grade Copper has dropped a similar amount over the same period of time.
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The negative slide in copper prices has overshadowed the positive news that OZL has acquired the remaining 10% interest in Avanco Resources in Brazil.
We consider this acquisition a fundamental boost to miner’s extensive mine life and will add to their “lean business” model outlined at the Macquarie Mining Forum earlier this week.
Our ALGO engine triggered a buy signal on OZL at $8.60 on February 12th and the stock has been in our ASX Top 50 model portfolio since June of 2015.
We will look to add to long positions around the $9.20 support level over the near-term.
Oz Minerals
High Grade Copper
