The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
We are in a non-contractual period whereby MMA have agreed to pay for minimal run costs until the exit is finalised. You are correct Karl, this would not extend to new drilling. If OMI is ready to start drilling immediately then they should do the exit deal asap as the market does not like overhang of old agreements. Lets exit asap and hopefully prospective new JV partners are already knocking at the door, and why wouldn't they be with gold at all time highs.
I guess MMA paid for the donkeys as part of the sale agreement, while their execs get to travel by heli :)
Impec, until pen is put to paper on the purchase of MMA, they continue to paying for all Anza costs ( licence and camp costs). We have a high cash burnrate as it is with directors salaries plus costs into other projects. My fear was that, once the MMA sale is signed-off that we need to move very quickly to progress Pepas in preparation for another raise or JV before OMI burn-out of cash. Given the various tweets/pics of activity onsite my fears are alleviated somewhat.
My point being the higher costs for Anza camp/personel do not kick in until after MMA exit/sale agreement signing.
Lack of mgt ownership is a red-flag to many investors, especially in the junior mining space. it is simply not credible that a BoD would try to sell an investment opportunity where they themselves do not put their money where their mouth is.
If the opportunity was so good, the BoD would be doing whatever it takes to free up funds to invest. Simply saying "I am too poor to invest" is a red-flag in itself.
TJ, there will not be any snag, MMA have achieved their objective which as to claw back some of their investment, the royality is extremely generous. The deal will go ahead, as if it doesnt OMI MUST tell MMA to f off with NOTHING which they have a very strong contractual basis to do, as I covered in many lengthly posts previously.
Ofc, this does not guarantee a timeline, it could be delayed, but 100% will go through or MMA walk with nothing. Remember, OMI hold the licences 100%, we dont need MMA permission to press ahead with Pepas drilling.
Impec, if we are to go down the very risky path of option 1, I would want to see a plan as to what is needed to get some formal resource estimates onto the board. Surely, having spent $20m on the project in recent years they have a LOT of data that could be used to formally estimate resources? I know that they have enough for their own internal estimates but how far away are we from making it formal? The formalisation of resource estimates is that will drive the BIG revalution here, the sooner OMI can make that happen the better.
It was the drill rigs that were moved by heli, if we have a drill contractor that can move by land it will be much less expensive.
I am 100% sure the deal with MMA will go through and that leave us in a fantastic position to enter a new JV. Anza is one of the best gold projects in the world, I expect we will secure a new JV on MUCH more favourable terms then with MMA. Brad has taken a lot of abuse in recent times, this should be the highlight of his career, I hope he has what it takes to deliver.
MM threw in the towel and went to the bar for a stiff one, he knows he is fkd on Monday. OMI likes a Tuesday RNS.
Undervalued by a factor of at least 3 at current metals prices. The markets are so dumb and I am very happy about that.
I thought I was fully locked and loaded but could not resist another slice when I seen OMI still under 5p this morning. Ty Mr.Market!
Even the juniors are moving now and Fres still under 600p! What a bargain.
I am shocked that this is still at $9m mcap with RNS due any moment and gold hitting high after high. My estimate $500m mcap when Anza is proven up. Ofc we will probably have to JV at least half away but still, $9m is mental. Thank you very much to Mr.Market for letting me accumulate so much at a cheap price. GL all.
Well if there are clauses that MMA can buy back in that will make a new JV problematic. We are giving them more than enough with the $15m plus 1.5% royalty.
I have a large network of junior mining investors on twitter, built over many years, and none of them have heard of Orosur or Anza. Most days there are 0 trades on TSX Canada. The potential for this to explode from a mcap of £8m is like nothing I have seen before.
MMA spend $20m on Anza but jumped around from target to target without fully defining any resource estimate. They were looking to answer whether it is a 10m+ monster. However, Newmont also walked from Buritica which turned out to be over 10m oz so we cannot read too much into their exit. There is still a chance that Anza is a 10m+ beast and Newmont just decided to focus elsewhere as part of their strategy.
Even at 5m oz with 100% ownership that is a $500m valuation. Insane potential here but it will be a journey with necessary dilution to progress.
We now need a plan to move towards formal resource definition, drilling is all well and good, but it is the 43-101 and PEA that is sorely needed to wake the market up.
Hxxps://www.mining.com/court-decision-to-uphold-mining-ban-in-colombian-town-impacts-anglogold-project/
An going saga, but my takeaway from it is near the end of the article, that "citizen's participation/popular referenda" can no longer veto a mining project. Unfortunately for Anglogold, it is not retrospective and thus it seems the citizen veto will remain for their project.
As best I can make out this is some 300km south of Anza.
Not a single share traded today so far in Canada. OMI is so under the radar still.
Brad expects M&A activity to ramp up, as do I. Trickle down effect from producers throwing off cash and looking to add ounces.
IMO this is what will start driving valuations for OMI soon, very soon - the medium-large producers who are looking to snap up solid projects. I don't believe OMI will have any issues whatsoever finding a JV partner for Anza, I have stated previously that if Agnico think they are going to get back in on more favourable terms than the JV MMA are exiting they may think again.
We are all here for the Anza gold but do not forget that high zinc content was also discovered there, plus we have options on tin mining in Brazil. Base metals are trending higher. The zinc in particular, as a by-product at Anza, will play it's part in the economic case that will drive the overall stock valuation.
Gonna get broke sometime soon (