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Nightmare of a share to be in and fomo on a 100% spike at any time without warning keeps me here. More likely to remain above 10p by securing the jv.
Basically, we're an exploration company. Our aim is to find a resourceful project with a potential to flog or JV with a major in the future. Anza , so far is heading in the right direction. Tin, currently seems to be in good demand. It is still early days for us. Lets hope it fairs in our favour in a year or two.
There is no Tin and I believe Indonesia is closing its markets very soon so the Tin cannot be exported forcing solder producers to set up in Indonesia rumour would have it. Unless China miraculously releases thousands of tonnes onto the market and the Premiums are much higher there due to lack of supply then I can’t see the shortness of supply improving. With the move to Ev only the shortages of chips could slow the increase and stifle the market.
@DrRem - I’m no expert on commodities so unable to offer any tips I’m afraid. My observation was just a passing comment on the fact that tin has doubled in price in the last year, having traded basically flat for the preceding four years. Is it better to buy into a mining project before or after the price of the commodity doubles? If this deal had been closed a year ago we might have paid even less, and Brad George would be being lauded for his foresight buying in just before the price took off! But it is difficult to say with any confidence whether the price OMI has agreed is high, low or fair. I expect that the seller is telling its shareholders that it has secured a good deal too. If tin doubles again in the next 6 months it’ll look like a good entry point/price for OMI. If it goes back below 20k then less so.
@Starbright - What historically low commodity would you advise them delving into them? Are you implying the JV is too expensive? There is, in my opinion, a big difference in beginning exploration of a commodity that’s is, highly in demand, ‘at a historical high’ and is considered to be one of the most important in future industries compared to investing in a company with the share price at a historical high… so you disagree with that statement? Regards
That no comparison watsoever
@Starbright That’s nothing near the same….
@DrRem… why not wait until the sp is back to ATH…? Same logic applies ;>
Not sure about the Colombia update being Monday Wayne but now that we are not following the predictable pattern it is alot more difficult to say. I'd imagine it will be when they are in South America personally but it makes no difference to me, I just keep adding when I can :)
Another positive for me from todays RNS is that it appears Brad has taken onboard the criticism a number of us have directed at him regarding RNS days being too predictable. Colombia update day changed followed by a Friday RNS is not what traders want to see. Colombia update on Monday anybody :)
For me the big news this week has been the info that Brad has provided regarding Columbia and how that is progressing and the potential that is there.
We have 2 majors who are going to spend millions on drilling this year and we are going to get constant updates. Also that we have loads of drilling results yet to be announced. In addition one of our neighbours finding a massive strike of over 300m wide, all adds up to massive potential for OMI. Yet the share price over the last 5 days has gone down, it is crazy.
Now is a perfect time to load up because more news is imminent, but to be honest I am happy for the share price to sit at this level for a bit longer so I can continue to fill my boots.
@Starbright If tin was at a historic low there would be either too much of it being mined or no demand for it, that would be the totally wrong time for us to venture into it in my opinion. The fact it’s at a historic high, has supply issues and we’ve basically got the JV for nothing… If tin was now at a historic low I dread to think what today’s RNS would have done for the share price. Aside from that looking good here, I’ll keeping adding at this joke price.
Hmm although it's not the transformational news Brad was alluding too and let's be honest there must be more and bigger to come to live up to Brads claim, he did state a few things need to fall into place and I suspect this is one of his ducks that are now aligned with others to follow.
In reality we knew the tin deal was more on or less signed so it might explain why official confirmation did not set the market on fire.
This is what we are here in AIM for, not the ftse, the chance to make our small pot of money into a very much larger one, joining companies at the beginning of the journey. Agree completely with you WayneJ, add up all the info we have to date, and the 27m MCap looks ridiculously low IMO, the upside possibilities are huge, with very little negatives as far as I can see. I look forward to the next set of findings, and the granting of licenses to proceed to the much talked about NE & NW areas, then I believe the exciting times really will come. Hopefully not too far away
Wayne is spot on In everything he is saying, if you want to hold long term this is an amazing buy in price, short term i feel it will drift down until the next Columbia update , maybe to 10-11p, hopefully it doesn’t , atm it cannot seem to sustain any rises
It's not only that Anza doesn't cost us any money, It's others who pay us cash and on top of that they add value to our share in this project on their expense. Can't imagine better option. It's like a father who pays regular maintenance to his ex while kids live with him, he parents them on a daily basis and he covers all expenses.
I think you need to learn some basics bc this is not about production. Orosur will rather dig some holes, add some value and then sell it away.
I agree Starbright. All of the people complaining that we're spending money but what if etc need to remember that Anza is costing us nothing, literally NOTHING! I would rather the company diversified and became more than a one trick pony instead of our board just sitting on their hands waiting for an update from Newmont/Agnico and using our $5m to just pay their wages. The same people whinging about this JV would also no doubt be the same people that would complain if the board weren't doing anything other than the Anza JV. Brad is clearly trying to put us on the map globally and transform us into something very different than a low mcap gold explorer. Also remember that we have over 10 million warrants which cannot be exercised until 25.5p that expire this year. The warrants alone will raise ALL of the expenditure for the 4 years of this JV. Read between the lines people, better newsflow, board earning their salaries, sp almost certainly heading to a minimum of 25.5p very shortly to cash in the warrants, oh and La Cejita! All I can say is listen to the conference call again and read today's RNS once more, then if you can't see the bigger picture sell, because there are plenty here that will buy them. Just don't monitor our sp after you leave because this will almost certainly rerate considerably in 2022. Good luck all of you who can see what an exceptional investment this has become.
I see this project as mainly relevant for management, as it will give them something meaningful to pursue. Who knows, it could turn out to be a masterstroke. Credit will be due to them for digging out a decent truffle if so.
Only USD1m to be expended in the next 24m is good news. If the project proceeds to phase 2, OMI should also have banked the expected final USD2m from the Anza JV (due Sept 2023). So this doesn’t look like too much of a rash gamble with the company’s existing/precious cash resources.
Holders here for the potential upside of the Anza project should just hold. No need to be perturbed by this. I view it as a shot to nothing. No immediate adjustment to share price (either way) looks fair to me.
My concern is the length of time before this project returns any cash, with 2 year and 4 year earn in periods being mentioned. Will the price of tin still be high when we are producing?
1. Phase 1 - earn 51% interest by spending US$1 million over a 24-month period.
2. Phase 2 - earn an additional 24% interest by spending US$2 million over a subsequent 24-month period.
@DrRemington - I would rather be the buyer of a mining project when the relevant commodity was at an all-time low.
Sotolo I might be wrong, but worrying about dilution at this stage is a bit silly, don't you think? We have $5m in the bank atm. If there will be any dilution related with this project we should expect it to happen at much higher SP level, not sooner then before the 2nd stage that starts in 24 mths! By then I expect our market cap to be like $150m, so I assume I won't mind rising money for this project if it really has the potential.
Sotolo I still think today's news is worth 10pc to share price. I get where you are coming from and haven't checked meridian's financing but I suspect it's more to do with focus on their cabacal project. They don't have the major backing that orosur have at Anza so possibly difficult for them to focus on two projects. Brazil tin has been on the cards for a quite a while now, I'm happy with it. We know there are JV's plural in the horizon and the tin is just the first into the diversification. This signals as does the early project takeover that the majors happy to move to 51pc. I don't know if you've listened to the conference call yet but it's definitely worth a listen. The company is starting to move again in the right direction after a wind down. As a shareholder I think you should be happy we are starting to move in the right direction again.
An honest spin , trying to explain the share price, wish more could/would do that as on these boards you tend to get a preponderance of over optimism that can lead one to lose money. I am often optimistic having been increasing my Tharisa but the they are on a PE of around 3 rather than infinity
I think I will hang on as ever as despite this waste, hoping Anza will come very good, maybe wishful thinking but I am a wishful thinker, however obviously others are balancing the buyers pretty much