Copper – Deep Value

Copper is now trading 50% below 2010 high.  We recommend buying OZ Minerals as a proxy for long copper and gold. OZ Minerals has an expanding production profile as the Carrapateena copper-gold mine in South Australia comes online.

Buy Oz Minerals at $7.25

Oz Minerals – Algo Buy Signal

OZ Minerals is under Algo Engine buy conditions and is a current holding in our ASX 100 model.

OZL generates solid cashflow from established copper production and the company maintains a defensive balance sheet. There’s upside for investors as the new Carrapateena development project is de-risked in FY20.

 

OZ Minerals – Algo Buy Signal

OZ Minerals is on our radar following the price retracement back to $8.60.

We expect buying support to build and the short-term indicators to turn positive.

1H19 EBITDA of $163m and NPAT of $44m were broadly in line with consensus and the interim dividend was 8c.  Forward yield is 4.5%. 

Accumulate OZL.

Oz Minerals – Update

OZ Minerals was recently added into our ASX 100 model portfolio.

We’re mindful of the selling pressure base metal prices have been under since the beginning of last month, with copper and nickel prices down 8% and 9%, respectively.

Commissioning of the Carrapateena mine later this year remains a key near-term catalyst to help support the OZL share price.  On  a valuation basis, we have OZL trading 10x FY20 earnings on a 2.4% dividend yield.

The company goes ex-div $0.08 on the 31st August.

 

 

 

 

OZ Minerals – Add to Watch List

OZ Minerals is under Algo Engine buy conditions and we add this name to our watch list. Early buying support is building just above the $9.00 price level.

OZL goes ex-div $0.08 on the 31st August and the stock trades on a forward yield of 2.7%.

OZ Minerals – FY18 Earnings

OZ Minerals was removed from our ASX100 model late last year after generating 144% return.

The stock is now under algo sell conditions.

OZL reported FY18 earnings that beat consensus with NPAT of A$228m. Dividends were lifted to $0.15

We’re buyers of OZL on the next algo engine buy signal. We will remain patient as the general price backdrop for resources  is  over extended in the short-term.

 

OZL and Origin Removed From The Model Portfolio

Over the last 24 hours, our ALGO engine has triggered sell signals for both Oz Minerals and Origin Energy. 

Both OZL and ORG have been longstanding components in our ASX model portfolio.

As illustrated in the summary below, ORG returned a respectable 30.93% over the 584 day holding period and OZL returned a whopping 144.21% gain, including dividends, since July of 2015.

Both of these names have been popular with investors and we’ll update with current ALGO signals in the near-term.

Oz Minerals

Origin Energy

Oz Minerals Is Back In The Buy Zone

As a result of trade tensions between the US and China, prices of raw materials and precious metals have been trading sideways to lower.

The same price pattern has emerged for the shares of mining companies that export these materials.

In this environment, the shares of the lower cost producers will generally perform better as the raw material price begin to improve.

During the last quarter, OZL reported that their production costs for copper had dropped from 97 cents a pound to 72 cents a pound. In addition OZL has a strong balance sheet and may expand their share buyback plans over the next 6 months.

OZL is part of our ASX model 100 portfolio. We see good support in the $8.80/90 area with an upside target near $10.20 over the medium-term.

OZ Minerals