Member Info for Yelacoirii

Brad reckons he's raised money so they can manage Anza when they take it back. Arguably this isn't unreasonable - as Omi would, even without any drilling, take on the $500k or whatever a year cost they have just to hold the site. Although given they have $1.7m its not a completely convincing. The message of "we had to raise at sub 3p because we might not be able to in the future" is prudent - but not exactly great news for investors. Companies should raise where they can - but prices matter.

Beyond that there just seemed to be jam tomorrow statements. Maybe - maybe - there will be some actual reveals from Nigeria and Argentina (Brazil seemed to be omitted but I might have misheard) before the PDAC in 2 weeks time.

How long have we been waiting for the Brazil tin assays? It feels like almost a year?

Maybe I'm too negative - but if the results were good I can't believe Brad would have sat on them this long.

I wouldn't perhaps mind Omi's sideshow adventures if there were clear signs and statements of progress. But every time it seems to be "things are looking promising, we are shoving another $1m into this" "ooo err, hang on, lets go silent for 6-12 months."

I feel I said this would happen, but it doesn't make me feel any less annoyed.

The Anza deal was what the deal was.

That deal hasn't forced the Board to bankrupt Omi through a combination of greed and ego. We are paying around £500k a year for these "poor men" who can't afford to dip a toe into the company - and have shot the rest of the company's money on 3 adventures elsewhere which have, as yet, produced nothing. Newmont and Agnico have messed us around - but under a year ago we had nearly $4m in cash. Now its all drifting away.

There have been plenty of AIM companies that operate on this "raise £500k-1m, the board bank half, and spend the rest on some drills (for oil, gold, whatever)" model. Find nothing? Ah well, there's probably another generation of mugs to give me another go". The hope for many I think was that Anza would make Omi different. The gold after all having already been found.

There doesn't seem much point cashing in at this level, but if there share price was to walk up to 5-6p again, I think I might cut a significant portion of my holding. I'd hope we'd hit 10p on some good Anza deal news - but its going to be dependent on a whole new generation of investors willing to get on board this train.

The issue isn't really dilution - which, as they say, is a fact of life for companies like this.

The issue is having to dilute when the share price is so low. I'm not sure why figures like 6-10p are being floated, when the current share price is about 4p. Maybe you can pitch the opportunities to them, and that the current market value is irrational - but its a bit of an ask.

You'd probably have to raise at around 2.5p or something. And in that case doubling the shares still only gets you about £5m.

Now if Omi could have a re-rate back towards 20p, and then could issue some shares at say 15p, then its not so much of a problem.

Yeah - I don't normally like being bearish, but I feel this company is sort of in a race.

I think getting 100% of Anza back should be great - although it sort of depends on finding a partner ASAP. I'm not loving the idea of "Agnico want out, but then might come back in on better terms". But Omi simply isn't going to have tens of millions to do prospecting - especially with the other commitments.

The other projects might come good but I continue to feel like they are sideshows giving Brad something to do. It remains unproven whether Omi can actually prove up a resource and then sell it for profit. What is proven is their capacity to consume cash.

Which leaves you in a chicken and egg. They will need to raise cash. Which you'd hope they'd do at a higher share price. But isn't that going to tank the share price? So why would you buy in more now? But if they were to try and raise say £4m when the market cap is at £8m, thats going to be kind of horrible too.

So I sort of feel like it all needs to come together at the same time. 100% of Anza back, plan for how to take that forward (including a partner), and btw they are raising a bunch of money, new shares issued. Share price hopefully bounces on the back of that, even with the inevitable dilution.

The negativity is due to a lack of clarity on the strategy.

If Omi's share price was say 20p, with a market cap of £40m, then I think we could tap markets for say $5-10m without annihilating current holders.

Unfortunately the share price is at 3p, with a market cap of £6m. I'm not sure they can raise much money at all.

Which is a bit of an issue given overheads - and undertaking commitments for $3m in Argentina, $4m in Brazil and now $5m in Nigeria. I don't know if any breakdown has been made public on what we have spent so far, but given we had $2.35m in the bank a month ago, we seem a bit adrift.

Ultimately there's nothing wrong with spending $5m (we'll ignore the issue of how you get it) to prove up a lithium deposit that can then be sold for several multiples of that (probably to some Chinese firm). But as a shareholder you've got to believe Omi will get to that point. Given how things have gone with Anza, its not obvious they can get to a close.

Now if in Anza the majors were to turn round and go "that was an interesting 18 month holiday, but now its full speed ahead on spending the $20m" then I think there would be a massive rerate. But as far as I can tell its a complete gamble on whether that happens or not.

The negativity is because Brad's strategy seems completely at odds with the interests of the existing shareholders. And being told "well, if current shareholders are too stupid to realise I'm running the usual AIM con, more fool you" leaves a bad taste in the mouth. Could he strike the Motherlode in Argentina, Brazil and now Nigeria? Maybe. But its far more likely he finds absolutely nothing having spent millions of our money. Then he can turn around and go "ah well, bad luck, lets find another bunch of punters to give me some more millions to have another go." While helping himself (and the rest) to significant salaries year after year.

If you want to invest in an AIM company doing that then there are dozens of them. Frankly even the ones that that get lucky eventually find a way to screw over long term holders.

If the share price was back in the 20-40p range, and he wanted to do a little raise of $3-5 million so he can play around then I wouldn't mind. But we are not. We are at 2p. Due to his mismanagement we're basically worthless beyond the cash we've got - and the plan is to go throw that into Nigeria? Its insanity.

We are here for Anza. And I fear we are going to go bust and then the majors will pocket Anza for a song. As people have said - why pay $20m exploring to get an additional 15%, when you could buy the whole shooting match for £4m. (Less, assuming the majors still hold a significant stake.) You'd be free of any obligations and you can proceed as quickly or as slowly as you like.

Obviously if they tried I'd hope the share price would go up a bit - but how much of a multibag from a joke is fair? If Newmont or whoever said "5-6p for the lot, or die" I'd think it was an insult - but due to having got in early enough, I'd at least keep most of my shirt. But then I can't vote so who cares what I think.

Have they gone completely insane?

All this does is fuel the paranoia that there is a plan to sell out of Anza for a few $million and a packet of crisps. Where else are they getting the money from? "dilution is a fact of life for small miners" - okay yeah, but not when said miner has been reduced to being more or less nothing already.

This is the sort of thing you'd do if Anza was ticking along and the share price was around floating 25-40p, so raising $3 million wouldn't be a huge problem. Not when that could be your market cap by the end of the week.

The issue is the management being quiet.

Brad outlined a number of possible steps in the call/video months ago. Its unclear there's been any progress on any of them.

Have the majors been trying to sell?

Are the majors going to walk?

Has Brad's idea of Omi taking back control and earning back in by proving up Apta etc had any response?

Have any steps been taken on forming a company, and so at least notionally starting the phase 2 timelines?

It feels like nothing has happened for 5 months (really a year) while the company has been throwing money at Brazil and Argentina. (News of which also seems to have gone missing, although I may be wrong in expecting any.)

I guess you can say nothing happens until it does, wheels turn slowly, managers change positions etc, but if MMA were going to walk away I'm not clear why they've twiddled their thumbs for the best part of a year (and about 6 months since giving Omi $2m).

I think the problem is that the current impasse suits them fine. Under the present circumstances they don't want to proceed in Colombia at $4m a year. But equally they don't want to walk away with nothing (and in turn, potentially hand $$$ to another party). Right now they can effectively maintain their position and future options, seemingly indefinitely, for $500-750k a year (which would count towards their Phase 2 obligations if they took them up). Throwing good money after bad isn't great - but I don't think that level of spending is going to jolt the majors into action.

I kind of think Brad should abandon the quixotic quest to get back 51%/49% control and prove up APTA (even if I think that would be in our interests) - and instead formalise the current arrangement. So the majors want to potentially hold off for a few years? Fine, but they have to pay Omi say $1m a year for the privilege. Recognising nothing is going to happen for ages would not be the best outcome for shareholders perhaps - but better than just waiting in silence. Omi would also then have the cash to go play in Brazil and Argentina rather than potentially dillute shareholders at this very low level.

Kind of think the $2m payment is a bit of a red herring.

MMA completed the Phase 1 buy in. They spent $10m. They had already given Omi the $2m for that phase. It would be almost impossible for Omi to turn round and say "no, I'm not letting you start phase 2, I'm not accepting the $2m to do so, I'll keep 100% instead" I feel confident MMA would just sue Omi into oblivion for breach of contract. Maybe there's some clause in the contract to get them, but "you've paid $12m and leave with nothing" isn't generally going to fly. Their lawyers are also likely to be considerably better than anyone Omi could afford.

The problem is that we are in this strange limbo. MMA making that $2m payment was only necessary if they were going to go into phase 2. But seemingly, 10 months on, no one is in a rush to actually set up a company where they have 51% and start the clock on them spending $20m (or $16m etc after the overspend). This is meant to be because the majors are weighing their options and Brad is on a likely doomed quest to earn back to 51% himself - but really its because I think the present limbo suits them. If they had signed up, keeping the option open would eventually start to become expensive. ($5m a year is hardly ruinous for Newmont+Agnico, but its a lot more than $500-700k or whatever care and maintenance is supposedly costing).

At some point its good money after bad, but I suspect MMA would be happy to keep to Anza on ice for a decade if that's what it takes. I feel they clearly think its worth something or they'd have walked before this point. That suggests there should be something for Omi holders. But it could be a very long road.

Not sure you can release an RNS for "Anza is close to being resolved". Its kind of meaningless.

Personally think he'll end up just caving in - but doing so (i.e. going to phase 2, MMA do nothing but sit on their hands for 2 years) would at least put them on the clock. As it is they've had a near free 10 months. No obvious reason they won't take a free 18-24 months if its available.

I feel Brad and co have said that the higher spend in P1 can carry over to P2.

Most recently it was in the hour long video - about 14.45 minutes in. (https://www.youtube.com/watch?v=StjFPD7ckdw)

I don't know if in that video or elsewhere they explicitly say any care and maintenance payments will count - but somewhere along the way I got the impression they did.

I think we are currently in the situation where Brad is engaged in a doomed quest to get 51/49% control back, so he can put more drills into Apta and/or Pepas, and prove up the resources there. There's a logic to this - as proving up even modest amounts of gold could elevate Omi's share price significantly from these incredibly low levels. The negative side however is that the majors have no reason to give anything back - and proving say 50k-100k oz (with more to find) wouldn't mean anything to them.

The problem we've got is that MMA have not broken the agreement. As per the talk, its Omi which is delaying the formation of the company. MMA are entirely in their rights to say "We've paid our option, we are claiming 51% and exploring a sale".

If they couldn't find a buyer, they'd eventually break the agreement if they don't keep up the phase 2 payments - and 100% would return to OMI - but that could be a long time from now.

For example, if the agreement to form the company were completed on 1st October 2023 (we should be so lucky etc), the first year is covered by previous payments. MMA would therefore not therefore be in breach until the end of the second year - i.e. 30th September 2025. Even then they would still have the option of just paying Omi $5m minus any incurred costs which would buy them yet another 12 months. Getting a bit expensive perhaps - but hardly a make or break for these companies. Anza could therefore be in limbo for 2, 3 years. Not great for Omi shareholders.

Brad said, rightly I think, that if you wanted to talk the majors out out of this its best done before the company is formally formed and they have 51%. Unfortunately the net result has been approaching a year of delay anyway, as the majors seemingly have no reason to agree. Especially not when retaining the option is only costing some token care and maintenance ($500-700k a year from the presentation?) which can be taken off funds they'd have had to spend anyway. Which I suspect is why the present situation suits the majors just fine. They can get on with other things, and keep Anza on ice. Drag things out a bit more and the next election in May 2026 won't be so far away.

If you are trading this the safe prediction is that its going to go down until it doesn't. On current status there is no obvious reason for anyone to significantly buy in, meanwhile some holders will always get bored and cash out (regardless of losses) to try their luck elsewhere. So you'd expect a steady drip drip down.

I guess you can take the view that Anza's stuck, any money going into Brazil and Argentina will be worthless, and the company will eventually burn through its $3.85~ m over the next couple of years before diluting all current holders to raise more. But it feels like that's probably 2 or so years off. Plenty of things could happen in that time.

For karl. Sure a 51/49% swap for relatively little wouldn't be too bad. I more meant in a scenario of the Majors going "its fine, we're out, you can have 100% back for nothing". It might be pure optimism in the face of all setbacks, but I'm on board for getting back control and trying to prove up Apta and Pepas. It may be a cliche, but it could be company making. I can understand that a proven resource of say just 100k oz (and we may hope/expect for a lot more etc) at one of these sites wouldn't touch the sides for Newmont/Agnico - but feel it would blow up Omi from the current share price.

I think the pessimistic view is that the Majors could spin things out for another 30~ months. Say 6 months to drive the new company through. Then they get 12 months into phase 2 for the extra spending. Then theoretically, they'd only be in breach after not spending $4m over the next 12 months. Sure it will cost them $1.5-2m to do nothing over that period, but this isn't exactly a ruinous sum to keep their option open and see what happens to Colombian politics - and their various internal developments.

Then again - letting Omi spend money to prove up Apta/Pepas might well help them sell, so not sure why'd they block it exactly. But equally, it does mean finding the money. Right now I can believe we can afford the initial $2m spend in Brazil/Argentina without too much stress. Things might be tight if we undertake a significant drilling campaign in Anza.

I'm not sure you can sell "a right to enter into a JV".

My understanding from the interview is that Omi is doing the go-slow on company formation. Probably because Brad knows once the 51% is gone they'll never it back.

The contradiction for shareholders is if Newmont/Agnico go "fine, we want out and Omi can have 51% back for a song" which seems to be what Brad is angling for then it suggests the whole project isn't worth very much. By contrast if they want out - but by selling for a high amount to a slightly smaller company, that should reflect well on Omi's remaining 49% and theoretically translate to the share price. Its where Brad and the shareholders are not necesarilly aligned.

And there is a concern the majors just sit on their 51% for a year (or more) because they don't get any bids.

Thrown in 3 questions.

"Can he flog entire Omi for 30-40p now and free us all?"

I think this is going to be the main conflict between shareholders and management etc.

I mean its daylight robbery - but frankly at this point 30-40p would be a blessing, and I'd be happy with 20-25 (your price will depend on your average I guess). Better to have something concrete and be out rather than stuck in limbo while Brad is getting excited about spending $3m he hasn't got over 5 years in Argentina. (But maybe everyone would change their tune if he got lucky on the first drill.)

I feel if Omi tries to go it alone any current shareholder will likely be massively diluted, and things could end up in limbo for years. The main perk of getting control back would presumably be that Brad could go and try and find another partner a lot faster than Newmont/Agnico trying to sell their share with our agreement standing over it.

I think the main contradiction from the video was this idea the majors are now super-sized, want at least 10m oz, don't know we exist etc but Agnico, market cap just shy of $30 billion, turnover of $5.7 billion... might struggle to fund $4m a year? Clearly they could find the money, its whether they want to.

Continue to think Anza's eventually going to be sold to someone, its just a question of when and at what price. With the share price in the gutter, can't see why one of the majors wouldn't offer a low-ball bid to take the whole project.