Member Info for ID78

OMI have a perfectly viable MRE that underpins the company.

OMI is not a producer with limited upside potential

OMI is not a explorer hoping to find gold and declare a commercial MRE

OMI have a perfectly viable MRE that serials the company. Production will require a minimal CAPEX and the profit will remove the need for dilution. Short term we are funded for 2026. Longer term we are funded for 6 years through production.

If PEPAS south was it I’d maybe look to invest elsewhere.

But PEPAS south was targeted as it could be drilled and move to MRE at relatively little cost and dilution - and quickly. It could be brought into production relatively quickly and cheaply. And as I said to finance the drilling of the MAIN prospects.

PEPAS south was always the smallest deposit but for the reasons above it was sensibly targeted. Otherwise we would be looking at drilling longer and continuous dilution to fund dilution.

This year we start on the real prizes.

Not prize

Prizes.

We have several deposits to drill and to shift the share price

But ignoring these prizes - PEPAS south will generate $1bill cash (revenue not profit) at multiples of today’s MCAP and most of that will be banked in only 5 or 6 years. So a wall of cash coming to OMI

So based on the smallest, worst deposit, the MCAP is low.

This is where OMI is unique it is not an explorer that will dilute into oblivion

It is not a producer with limited upside.

It’s a bit special….

B Postive - I think your post answers an its own question.

Jangada is looking at small ore bodies.

Yes PEPAS south is also small but the other projects have multi mill oz potential.

In addition OMI are not far from production with little capex.

There is the difference in investment case and mcap

40,000oz is $200mill

Kinda busy with one of those job things

$200mill a year - see LW’sposts.

Thanks LW.

And those numbers crashed the share price 🤦🏼

Sure there’s bigger and better out there and OMI has 3 drills turning to prove up the other prospects.

But in 1 year they have proven up $1bill of gold at the smallest prospect in the portfolio.

Next year they start mining and making money. That’s quick.

VERY quick

Of course they won’t make $2bill a year free cash flow (before anyone starts) as there is a recovery factor (was it 88%) and the cost to mine and toll payments.

Nevertheless they should have free cash flow higher than the current MCAP

Again focusing on ONLY PEPAS south here…..

Plenty of drill results to come from the exploration side.

Tgr

- they have found $1bill oz of gold

- they will mine that and turn it into cash in a very short period of time

- capital expenditure is low as they don’t need to build plant to process the ore

- capital expenditure and operational expenditure is low as it is mining from surface

- AISC (all in sustaining cost) of mining will be low as the grade is high and again - from surface.

That is the bit you can hang your hat on (PEPAS south) We know this and there is no doubt.

The rest is speculative exploration

Argentina (El Pantano)

Columbia, PEPAS North, Apta and El Cedro (and erm the new one I’ve forgotten)…

APTA has potential as a large, high-grade body of gold mineralisation and has already got tens of thousands of metres of drilling and can be proven up to a resource soonish.

El Cedro - a possible large gold porphyry target

They are funded for all drilling this year, 2 drills in Columbia and one in Argentina. Next year we would be wanting PEPAS south to fund all drilling. … the MRE stated about 40,000oz. At $5,000/oz that is $2mill a year. More than the current MCAP.

Don Durrett had this as a potential 50 bagger if all these targets come in good.

That is the quick investment case.

PEPAS south we know has $1bill gold. That’s is fact.

There is huge potential for upside at the other target areas PEPAS south was the smallest but could be proven up. and be brought into production quickly, to fund further exploration and minimise dilution.

Tungsten investor is correct.

Delivering in 5 years is a very different cash flow profile.

Significantly more cash flow …. And it’s a bad thing?…

Quite correct, Terry

Wraype - exactly totally derisked.

(And welcome!)

Why?

We are invested for the other licence areas in Columbia and in Argentina. PEPAS was the small resource, however in saying that - it is worth multiples of the MCAP.

PEPAS south will now fund the exploration of the big prospects and remove the risk of dilution or warrants.

So why would I sell??… why would anyone sell u leads trading?

PEPAS south was never going to be big but it was going to be a company changer by removing risk of dilution and placings.

Clive Thompson is a treasure in his own right IMO. Anything I’ve posted here is what I’ve learnt from listening to him.

PP - totally agree if/WHEN Comex fails to deliver then the big boys will start looking at doing deals with the miners directly - just as Samsung have done…

Sorry yes!!!! $1bill not $1mill!!!!

IF this company stands still and finds no more gold it is worth $1mill and in 5 years it will have changed most of that gold in the ground to cash. Thats multiples of today’s MCAP.

Most other companies would take 5 years to build and commission a mine.

That ignores the main prizes. The real company maker projects.

It really is a terrible RNS (sarcasm)

I don’t really get the posts.

People were guessing a MRE of 300,000oz.

It’s 200,000oz … it is $1bill dollars.

Easy to mine. Very low operating costs. It’s a gem.

There are companies nearby that would buy this for $500mill

And it’s bad news 🤦🏼

So they have declared an asset worth $1bill (ish)

CAPEX to mine it - maybe $20mill

If they do mine 250,000 tonnes a year the the life is 4-5 years and they print up to $200mill a year depending on the price of gold.

Not bad given this is the ‘mini me’ project that is only intended to provide cash flow whilst they prove up everything else.

You hear of other projects in other industries declaring (hoping) to hit $1bill and a few $100mill in capex. So once OPEX is considered they are lucky to hit $500mill profit And that’s THE project they hope to get off the ground.

This is the mini me project to provide cash flow. It’s worth $1bill and can generate up to $200mill in cash a year depending on the price of gold.

I’m happy enough with the update.

Could be near $100mill a year from production, based on those numbers

$200mill of gold is $6000/oz

All stocks could drop initially

And then hold and silver miners should kick on as a safe haven from the AI bubble

This guys chart shows what happened in the 70s and how the same looks to be happening now.

The chart is 24min in and is the S&P / gold ratio (or maybe it’s silver)

When the chart (the ratio) falls the S&P is dropping in value relative to gold (or silver).

We are close to a breakdown below a support level. At that point the ‘super core’ super capital rotation event happens when the stock market crashes and money rotates into the monetary metals safe havens…

https://www.youtube.com/watch?v=W1f3MKEaBoc

I think I was banging on earlier about capital rotation out the stock markets into gold and silver.

This guys chart shows what happened in the 70s and how the same looks to be happening now.

The chart is 24min in and is the S&P / gold ratio (or maybe it’s silver)

When the chart (the ratio) falls the S&P is dropping in value relative to gold (or silver).

We are close to a breakdown below a support level. At that point the ‘super core’ super capital rotation event happens when the stock market crashes and money rotates into the monetary metals safe havens…

https://www.youtube.com/watch?v=W1f3MKEaBoc