I think SANDFIRE good get some cheap assets with kzl
Does this sound like KZL or what? "There may be some good assets or companies that are undervalued, or in need of a friendly helping hand," he said.
BY: STEPHEN BELL From: The Australian August 04, 2012 12:00AM
SANDFIRE Resources may turn from prey to predator as it steels itself for a cash influx from the soon-to-be-commissioned DeGrussa copper mine in Western Australia.
Despite wobbly metal prices, DeGrussa will generate enough revenue for Sandfire to seriously consider base and precious metals acquisitions in Australia, Africa or South America, chief executive Karl Simich told Deal Journal Australia.
Simich said Sandfire, previously viewed as a $1 billion takeover target, had moved on to the front foot by holding "cursory discussions with some smaller entities" on buyouts.
The company's ambitions would grow once DeGrussa -- a copper deposit discovered three years ago and about 900km north of Perth -- shipped its first concentrates in November or December, he said. Sandfire has been shipping limited amounts of "direct ship" ore since May, but revenues will grow once the $400 million mine starts full-scale production of copper concentrates.
It predicts DeGrussa will produce copper at a cost of $US1 a pound, well below current copper prices of around $US3.30 a pound. By early next year, the mine should be producing 77,000 tonnes of copper and 36,000 ounces of gold per year.
This should enable the mine to generate $2.4bn of pre-tax operating cashflow over its seven-year life.
Simich said that, after paying dividends and for ongoing exploration, Sandfire would look for acquisition opportunities.
"There may be some good assets or companies that are undervalued, or in need of a friendly helping hand," he said.
