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Agreed DrR, the costs of running the camp including licence fees are around 500-700k per year, something that OMI cannot afford so we need to get moving on creating value and securing a JV.
In respect of the deal, I am just glad that the debacle is over. It also values Anza at a minimum of $30m at present, before we prove up any resources. OMI is now undervalued on this basis.
The ball is firmly in Brads court now, he can structure a new JV as he pleases, hopefully it will require proving up of the various zones one-by-one which is what drives share price appreciation for a junior. He will no longer have the excuse of "partners are fully in control, we are hamstrung by the JV terms".
A turning point and surprised we are only up 6%.
Karl, your scenario is extremely unlikely. The fact is that OMI are at present 100% holders of Anza, the contract is clear that MMA get nothing unless they progress to P2, they have strongarmed OMI into getting something out of it. We have had 18 months of legal limbo already, if for some reason a deal is not made in the next few weeks, OMI should be telling MMA to "bugger off" and press ahead with the Pepas plan.
OMI would win hands down in any legal dispute regarding what MMA is entitled to (nothing).
I have been wondering recently if anyone is aware of Brad's history? I mean any notable successes in his career. The bio on the OMI site is not very specific at all, OK he has worked in and around mining but so what, I want to know about successes - what has he proven up or delivered?
That pen must be starting to get heavy now. Some poise on our guy.
They said they were barred from buying for some time due to having market sensitive information during the drill campaign. This was their way of saying "hey we are buying now as we can". It means nothing to me, a pittance.
Please explain then Dogger? All I see is a sector that has been in the toilet for 3 years, many stocks at lows and now lagging an explosive move in the metals. If silver can get past key levels of $26 and hold there thus year FRES will be much higher than 440 at year end. Silver is $28 on the Shanghai exchange.
Sure, Mexico had problems in the past year or two, but this seems to be improving. To me FRES is mispriced at 440 with silver knocking on $26.
DrR, I am sure Brad will find plenty of excuses, he always does. I want to see a drill plan for Pepas including costs. They will need to raise again, or get the price up to warrant level to trigger those funds. Hopefully the latter.
I just did the calc roughly Seingred as $50 is an easy number to work with. Each project will be different, but if we take a reasonable assumption that M&A activity will begin heating up then oz in the ground become worth more as the gold price rises, and if it continues to rise faster than inflation. I believe the last 2 years correction in mining stocks was driven by the fact that inflation was running hotter than gold price increases which I do not think is the case any longer.
I think it was reposted here recently Chicken. I think that old figure was based on the only known drill site at the time which was Apta. Imagine, we havent even scratched the surface of what is there in the surrounding areas. We know it is a VMS systems containing porphyries with high grade zones on top like we seen at Apta. Rick Rule is a fan of VMS systems.
The geology is certainly exciting, but can OMI do anything about it commercially? I would much rather have Brad fully focused on directing geology rather than dealing with the legalities of JV agreements where both he and Louis are clearly out of their depth.
Lets take very conservative numbers of 2m oz @ $50 = $100m. That is what OMI could be valued at simply on ounces in the ground, IF they can prove up Pepas without going bust.
I am starting to see a lot of junior miners move off their lows, following recent moves in majors. This makes sense given that gold has made new ATHs and is looking strong which means more favourable project economics. Surely an increase in sector M&A activity is not far off? One would think that OMI should easily find a partner for Anza.
You always want to see Director purchases, especially if embarking on a drill program. Surely once Anza is tied up they release an RNS then they can purchase - the only acceptable reason not to do so is if they are barred because they are in talks for a new JV, which I do not believe is the case but who knows.
At least there is a plan to do something, or attempt to do something, as soon as we get exit terms finalised with MMA. Two questions arise, what are these "factors outside our control", and how much is it gonna cost per drill?
Brad, Louis, and whoever the other directors are, need to buy significantly more shares. Other juniors I have invested in the CEO and Directors are the largest individual holders. Going forward, I will pass on any juniors where the Directors are not significantly invested, regardless of how good the project looks. Brad used to say that they would like to buy but always locked out because they had "market sensitive info", I believed him, then when the window opened they bought only a handful. If they had their own money invested they would not have let MMA drag this out for over 18 months. Not good enough.
Chart is beaten down massively, looks like huge value but I don't have time to do deep research on every company. Can anyone tell me why this has stuck to the bottom of the chart range while HOC for example has been rising with the lastest PM rally?
For those that are seeing my earlier comment now, at the time of posting the volume on TSX was 1 lol!
Brad loading up on TSX today...pens poised
J - explorers have to find good projects and then prove them up. No part of Anza has been taken to formal resource yet, that is why I still have hope. Brad said in an interview some time ago that the majors were not aligned to how a junior realises value. The majors were happy to take an estimate of an area, drill a few holes, estimate again, and then move to another area. Anza is huge, I think our land holdings is over 200km2 (from memory).
If we get back control we focus on one area and take it to JORC/formal resource. That primary target, until the Pepas drilling, was Apta as we know there are very high grades there. The fact that Brad said Pepas is now the number 1 target is very interesting.
The big question for me as an investor is why did MMA walk if Anza is so good? It is documented elsewhere that Newmont is streamlining and only focusing on the 10 best projects in the world, and Agnico never liked the JV terms, hence why Brad said Agnico might want back in, so these points alleviate my fears slightly.
Most long-term holders bought in due to the safety of having majors fund drilling to PEA, which justified higher prices at that time. Now, it is a complete gamble, could go to 0 or 50p who knows. Can Brad play an Ace? He must want to retire as a hero and not a zero surely?
If I recall correctly Pepas gold was very near surface, which would make open pit a possibility thus favorable project economics. Also, we wouldn't need to drill as deep thus drill costs lower? What I cannot remember is how difficult Pepas is to get to, I recall talk of helicopters to move drills which is something we do not want to be funding ourselves.
Cost of drilling is going to be so critical here if we to self-fund Pepas. I hope Brad the Geo knows how to hit the mlode as we are finished if we go for it and turn up junk/low grade/small deposit.
Just going on my memory here so if I have got anything wrong happy to be corrected.