Member Info for MetalMania1

A bid would be a tragedy.

We have line of sight on very low capex estimates of

A bid would be a tragedy.

We have line of sight on very low capex estimates of

This is what the analysts at Greenwood said:

“Our production scenario assumes mining and some form of comminution/pre-concentration at site and then trucking of ore to a 3rd party mill for further processing and refining”

Hope helps

Barely scratched the surface at Pepas Sanguine.

C.350k as it stands but only $15m capex required (that could be toppy too, see previous posts)

Imagine if they expand on Pepas… and this doesn’t include any upside from the three other assets lol

"average annual gold production of c.29koz and total production over a 13-year LOM of just under 350koz. In reality, the LOM could be shorter and production level higher, but we base our model on 250ktpa ROM ore mining rate, readily achievable from a mining point of view and also for any required crushing capacity and well within the scope of throughput for mobile crushers even. Our model simplistically assumes a 4g/t Au head grade is achieved and 90% metallurgical recovery. We estimate US$15m capex (including US$1m for royalty buyback) which includes all pre-production site works including road access and infrastructure to support mining and pre-concentration equipment. This is likely an overestimate as not much plant is required beyond a small crusher which could even be of the mobile variety. Our production scenario assumes mining and some form of comminution/pre-concentration at site and then trucking of ore to a 3rd party mill for further processing and refining"

"At spot US$3,487/oz, the NPV increases to US$245m and IRR 192%. In any scenario, the low capex and highgrade translates to a rapid payback operation within the first year"

We have insti’s scrambling to get in imo

When did you last see such a low capex for such a return?? All ears.

With feet on ground this can 5-10x with Pepas producing.

Start up costs are so low, it’s a future cash cow (and pe m, ev/ebita multiples will be silly low).

I don’t think some grasp the scale of upside.

$15m to fund an off the chart free cash yield for 13 years

That funds other assets and makes OMI a potential further acquire

The biggest risk to everyone right now is a low bid. That would be a tragedy

Reality is that there’s nothing that comes even close to OMI on value.

Immense grades, immense upside (from 4 assets) and a very light capex route to immense cashflow. Everyone that was buying in the 20s will be wishing they bought more soon. I see 30s in next week or so.

Again, this snippet from Greenwood:

"In scoping out our initial production scenario and economics, we have not included any upside from Pepas North or additional Pepas type discoveries nearby. It’s early days at Pepas North with only 3 holes drilled but channel sampling suggests that this prospect could more than double the size of Pepas, in our view"

Crazy the upside when you consider the tiny capex for such a cash cow and Greenwood suggest PAYBACK WITHIN A YEAR! .Here's some more from their note:

"average annual gold production of c.29koz and total production over a 13-year LOM of just under 350koz. In reality, the LOM could be shorter and production level higher, but we base our model on 250ktpa ROM ore mining rate, readily achievable from a mining point of view and also for any required crushing capacity and well within the scope of throughput for mobile crushers even. Our model simplistically assumes a 4g/t Au head grade is achieved and 90% metallurgical recovery. We estimate US$15m capex (including US$1m for royalty buyback) which includes all pre-production site works including road access and infrastructure to support mining and pre-concentration equipment. This is likely an overestimate as not much plant is required beyond a small crusher which could even be of the mobile variety. Our production scenario assumes mining and some form of comminution/pre-concentration at site and then trucking of ore to a 3rd party mill for further processing and refining"

"At spot US$3,487/oz, the NPV increases to US$245m and IRR 192%. In any scenario, the low capex and highgrade translates to a rapid payback operation within the first year"

Honestly, the valuation here is nuts when again you consider the three other gold assets too.

Many congrats here, one i just watched go up and up!

Volume was 679% above 20 day norms today. Think those gap up estimates are very realistic

The haters will be chasing the shares higher tomorrow

And should add this is a key comment and makes one more bullish:

"In scoping out our initial production scenario and economics, we have not included any upside from Pepas North or additional Pepas type discoveries nearby. It’s early days at Pepas North with only 3 holes drilled but channel sampling suggests that this prospect could more than double the size of Pepas, in our view"

"At a 1x NAV multiple (unrisked) for Pepas our TP would be 50p/sh (C$0.91) at base pricing and 64p/sh (C$1.17) at spot gold"

"Any additional discoveries at Pepas not factoring into our valuation at present"

And then we have APTA, El Cedro and El Pantano to come to!

Looking forward to seeing this in the 20s

1.25/1.30 open tomorrow imvho

N/T for anything on the bell @ 18.5 ask

Fwiw, you can't buy much on 18.5p, too many want them.

I'd suggest beyond 20p tomorrow

How high tomorrow?