Under valued / under radar17 Oct 2017 01:31
Little summary of OTC at a glance. Four main projects on the books each at different stages and different geological locations to derisk OTCs portfolio. 1. CASA (misisi) operating since 2010 and currently has a JORC confirming 1.2moz gold. (Given today's price of £970 per ounce that's about £97m). Spent $30m on the project thus far and have a fully funded drill programme (underway) to drill in between the old holes to confirm the geology linking it to be a much bigger gold reserve. Initial assey results from new drill holes confirm this to be case and awaiting final results from remaining drill holes. Expected to increase the JORC to 2-3moz (so assets worth in the region of £280m before extraction). The gold is close to surface and likely extraction will be OPEN PIT heap leeching. 2. Zamsort - cooper and cobalt mining in Zambia. Currently under construction is a commercial processing facility (subject to final financing) in order to process current stock pile of copper and cobalt ore. Medium term is to continue drilling the 1000km^ licence area for another massive tonnage find. Given the demand for copper and cobalt this looks like a beast! 3. Andiamo - another copper and gold project. 4. Sturec - Slovakia 1moz JORC gold, currently in negotiations with third parties for a potential JV and non acid leeching extraction. Given all the assets OTC have their fingers in potentially upwards of £500m worth of pies (before extraction and processing cost of course) and the current MCAP is a measly £3-4m. Do the maths - this is hugely undervalued. The projects have already had a lot of cash spent on them proving them up and developing them, so this is an excellent time to join. SP at 52 week low pretty much so plenty of upside from here. Shame there are a few ex PIs with a chip on their shoulder bringing down the maturity of the bb. DYOR etc etc but looks good to me.