RE: Morning all7 Nov 2020 12:51
bhargav - for clarification - I am an investor with (from my point of view) a substantial investment in OMI and having been in over two years and recently topped up (disasterously? caught with the FOMO hype at 18p and 42p)- my average is now around 18p
Whilst on the face of it it appears all "blue skies" in respect of the share price from here - there is something that nags that if it seems too good to be true - then it probably isn't ! - there's no guarantees in AIM and I've been burned before - I hope I don't need my tin hat as I dive for cover for being accused of de-ramping but
Your postings here to me have all appeared all positive - It would be good to see a more balanced view point with some worst case scenarios and consideration as to what can possibly go wrong (please feel free to add to them !) - if the price does crash it'll probably be something nobody can foresee anyway
i) an obvious negative could be for instance that it is deemed to be uneconomical to pull the shiny stuff out of the ground - gold grades indicated not proving up - Newmont and Agnico then "walking away" admittedly having financed a heap of exploration costs but leaving a largely valueless asset for OMI to manage
ii) downturn in international relations/internal problems or detrimental legislation in Colombia/increases in licensing fees
iii) to a lesser effect - the price of gold
iv) the "Covid" effect
v) corruption within/without
Clearly the markets have currently assessed the current "risk" value of OMI as 28-31p - I am presuming all investors are of the blue sky opinion that this will bag many times - and probably haven't assessed at which point they will "top-slice" or review their investment here -I'm pretty sure that I will start to consider a free ride around £1 - this being a somewhat binary bet - as if it all goes absolutely horrid then, with no other assets, you would probably have to reckon on 2-4p ? dare I ask at what level you would consider taking some profit bhargav ?
Also, a question - with Newmont/Agnico as 75% shareholders (when they get there) - is there anything to stop them voting through a takeover at an inferior price to worth ?
GLAH - DYOR - only invest what you can afford to lose !