ASX:OZL

Stock Analysis Report

Executive Summary

OZ Minerals Limited engages in the exploration, development, mining, and processing of mining projects in Australia.

Rewards

Trading at 63.6% below its fair value

Earnings are forecast to grow 19.4% per year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has OZ Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OZL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

OZL

0.4%

AU Metals and Mining

0.7%

AU Market


1 Year Return

-5.4%

OZL

4.6%

AU Metals and Mining

15.8%

AU Market

Return vs Industry: OZL underperformed the Australian Metals and Mining industry which returned 6.6% over the past year.

Return vs Market: OZL underperformed the Australian Market which returned 15.3% over the past year.


Shareholder returns

OZLIndustryMarket
7 Day-3.5%0.4%0.7%
30 Day-9.4%-5.5%0.4%
90 Day-3.3%6.5%6.5%
1 Year-3.2%-5.4%10.0%4.6%21.0%15.8%
3 Year7.3%0%51.7%33.0%37.4%19.1%
5 Year196.9%162.1%84.0%40.8%50.7%17.1%

Price Volatility Vs. Market

How volatile is OZ Minerals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is OZ Minerals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OZL (A$9.96) is trading below our estimate of fair value (A$27.35)

Significantly Below Fair Value: OZL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OZL is poor value based on its PE Ratio (19.7x) compared to the Metals and Mining industry average (12.4x).

PE vs Market: OZL is poor value based on its PE Ratio (19.7x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: OZL is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: OZL is good value based on its PB Ratio (1.1x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is OZ Minerals forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OZL's forecast earnings growth (19.4% per year) is above the savings rate (1.1%).

Earnings vs Market: OZL's earnings (19.4% per year) are forecast to grow faster than the Australian market (9.4% per year).

High Growth Earnings: OZL's earnings are forecast to grow, but not significantly.

Revenue vs Market: OZL's revenue (9.8% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: OZL's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OZL's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has OZ Minerals performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OZL has high quality earnings.

Growing Profit Margin: OZL's current net profit margins (14.8%) are lower than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: OZL's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: OZL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OZL had negative earnings growth (-26.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (18.2%).


Return on Equity

High ROE: OZL's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OZ Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: OZL's short term assets (A$486.5M) exceed its short term liabilities (A$296.1M).

Long Term Liabilities: OZL's short term assets (A$486.5M) do not cover its long term liabilities (A$538.0M).


Debt to Equity History and Analysis

Debt Level: OZL is debt free.

Reducing Debt: OZL had no debt 5 years ago.

Debt Coverage: OZL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: OZL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: OZL has a high level of physical assets or inventory.

Debt Coverage by Assets: OZL's debt is covered by short term assets (assets are 1.7117197021217E+16x debt).


Next Steps

Dividend

What is OZ Minerals's current dividend yield, its reliability and sustainability?

2.31%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.3%markettop25%5.4%industryaverage4.4%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: OZL's dividend (2.31%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: OZL's dividend (2.31%) is low compared to the top 25% of dividend payers in the Australian market (5.49%).


Stability and Growth of Payments

Stable Dividend: OZL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OZL has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.4%), OZL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OZL's dividends in 3 years are forecast to be well covered by earnings (35.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Andrew Cole 0

5.2yrs

Tenure

AU$2,443,267

Compensation

Mr. Andrew Cole has been Managing Director, Chief Executive Officer and Director of OZ Minerals Limited since December 03, 2014. Mr. Cole has been Non-Executive Chairman of Avanco Resources Limited since J ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.63M) is about average for companies of similar size in the Australian market ($USD1.37M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Cole
MD, CEO & Director5.2yrsAU$2.44m0.15% A$4.8m
Warrick R. Ranson
Chief Financial Officer2.2yrsAU$1.27mno data
Mark Irwin
Chief Commercial Officer & COO0yrsAU$1.14m0.00031% A$10.0k
Steven McClare
Chief Technical Officer0.8yrsno datano data
Natalie Worley
Head of Investor Relations0yrsno datano data
Richard Hedstrom
Head of Corporate Development0yrsAU$765.45kno data
Sheila Chan
General Manager of Marketing & Sales0yrsno datano data
Fiona Blakely
Chief People Officer1yrsno datano data
Kerrina Chadwick
Chief Corporate Affairs Officer3.2yrsno datano data
Tania Davey
Chief Transformation Officer1.1yrsno datano data

1.6yrs

Average Tenure

Experienced Management: OZL's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Cole
MD, CEO & Director5.2yrsAU$2.44m0.15% A$4.8m
Peter Wasow
Independent Non-Executive Director2.3yrsAU$200.21k0.0043% A$139.5k
Charles Sartain
Independent Non-Executive Director1.5yrsAU$191.37k0.022% A$697.1k
Richard Seville
Independent Non-Executive Director0.3yrsAU$29.44kno data
Tonianne Dwyer
Non-Executive Director2.9yrsAU$191.37k0.0046% A$149.5k
Rebecca McGrath
Independent Chairman of the Board2.8yrsAU$360.17k0.013% A$426.5k

2.5yrs

Average Tenure

57yo

Average Age

Experienced Board: OZL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.


Top Shareholders

Company Information

OZ Minerals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OZ Minerals Limited
  • Ticker: OZL
  • Exchange: ASX
  • Founded: 2008
  • Industry: Copper
  • Sector: Materials
  • Market Cap: AU$3.229b
  • Shares outstanding: 324.19m
  • Website: https://www.ozminerals.com

Number of Employees


Location

  • OZ Minerals Limited
  • 2 Hamra Drive
  • Adelaide Airport
  • Adelaide
  • South Australia
  • 5950
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OZLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
OXRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
OZML.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
OZLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

OZ Minerals Limited engages in the exploration, development, mining, and processing of mining projects in Australia. The company primarily explores for copper, gold, silver, nickel, iron oxide, zinc, and lead deposits. It owns and operates the Prominent Hill mine located in northern South Australia; the Carrapateena project located in South Australia; and the Antas mine located in the state of Pará in the northern region of Brazil. The company also holds interests in the West Musgrave copper-nickel project located in the Musgrave Province, Western Australia; Pedra Branca project located in the southern part of the Carajás in the state of Pará in the North of Brazil; and the CentroGold project located in the state of Maranhão in northern Brazil. In addition, it holds interest in the West Musgrave copper-nickel project located in the Musgrave Province, Western Australia. Further, the company has interests in the Paraiso, Pantera, Lannavaara, East Musgrave, Punt Hill, Oaxaca, Coompana, and Eloise properties. The company was founded in 2008 and is headquartered in Adelaide, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 10:34
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.