Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Probably the Chinese.
If China stops buying US Treasuries their currency will quickly appreciate. Ditto if they back it to gold when its on the rise (if it is). That is going to wreck an export-orientated economy. The Chinese government can't handle a proper recession when its credit was almost all expended bailing themselves out of the last one.
Really while its been a perennial dream of the goldbugs the likelyhood of a gold backed cryptocurrency taking on the dollar is incredibly low. It doesn't serve a strategic purpose.
"Yay, 6.2 was trying my nerves."
"No! I should have bought more!"
The instant lament.
The issue is people buying in thinking this was going to go to 12, 18, 80-100p by Christmas are now thinking "oh wait, might not happen" and selling up. At the same time buying pressure is very weak. (With respect to those posting here that they have bought in, you seem like the only ones).
While its sobering, there were no surprises in the last RNS. Omi is now almost a pure Anza play - unless the gold price rockets to a minimum of 1350, possibly 1400 by December in which case Uruguay might be worth something.
The project is now effectively in Newmont's hands. What shareholders should want is either
A) More drill results showing high concentrations of gold over a wide area.
B) Most importantly - that Newmont are going ahead with the Phase 1 earn in. While it might not happen, that probably should arguably double Omi's share price from this level at least and potentially get the ball rolling.
The danger for shareholders (and especially get rich quick types) is that Newmont will sit on this for 2 years, letting Omi burn through cash by just existing.
I said before that blaming MMs is a bad road to go down - but there is something annoying in the price barely moving at people buying £40k's worth - but then collapsing 10% because some other people want to offload £20k.
If gold prices rise to $1400+ then plenty of gold shares will jump. Not sure on the cap - but I think OMI was about 80p/share when gold was over $1800.
Right now though Omi is basically Anza and a bunch of borderline worthless assets (at $1200/oz).
So to get a figure of "Omi is worth $100m" Anza would need to be worth about $500m, since Newmont would get 80% of it.
And it might be - but it won't be worth that based on getting any gold out of the ground next week, next month, or even next year.
But then people look at Solg and not unreasonably say "why couldn't it happen here" (imo Solg is considerably overvalued except as a potential takeover target, but what do I know.)
In the short run another excellent drilling results RNS or a statement from Newmont that they are green lighting phase 1 investments are probably what we are looking for.
Pressure seems to be building but it keeps bouncing off that 10p mark. Be interesting to see whether it breaks this afternoon or whether there is a slight pull back for the weekend.
A touch under 400k of II's shares are mine.
100k really isn't very much. Its the equivalent of around £9k. So sub 0.1% or whatever of the value of the company. Unsurprisingly not putting a huge amount of pressure on the price.
Really this needs some news or a social media ramp or something. The price isn't going to fly on tiny volumes no matter how much people keep saying there are only so many shares in free float.
Blaming MMs is the first stage of being disappointed, but it does seem like weird behaviour. The price seems glued to the 9p mark, and while you see moderate runs of buys, the price is promptly collapsed by just a trickle of sells.
Maybe there are some big sales that will come through after hours.
Looking forward to when Chicken gets here and he explains how he could buy at 8.85.
When I'm a millionaire due to always buying at the lowest point and selling at the highest I hope I spend my days ramping, then deramping, then ramping again on forums.
What, reducing the price when there is minimal buying pressure to speak of?
I want this to go to 12, 20, 80, whatever as much as any other holder, but if no one will buy at 8p its a bit strange to assume people will be falling over themselves to buy at 12.
If the number of shares was very low then discrete liquidity might be a problem.
I am not convinced however there is much difference between 150 million and 3.5 billion, unless you think holders are happy to own X number of shares (as opposed to however much they get for £££).
I find the idea weird that someone would go "I want 100k shares in OMI, in GGP, in Solg etc" without any idea what 100k shares represents and just because 100k sounds like a round number.
If gold goes back towards $1800 then all holders of almost any gold stocks will be laughing.
I wouldn't hold out for that though.
Shares seem scarce but there is still a lack of buying pressure. If you believe other posters (and its generally not a good idea) almost everyone investing in the share is talking here and that isn't enough. OMI needs to get a wider audience - which either means either a puff piece in a popular location, or better still further positive news.
Unfortunately I suspect this may drift due to the typical psychology of people buying at 9, get upset it didn't double over the afternoon and then sell up at 8. Rinse repeat and OMI could easily drift to 6~ over the next few weeks. At any point however it could also go to 12+ in a couple of hours - and its likely to do so at some point. Unless you are going to sit here 24/7 good luck catching the bottom, and it will likely be impossible to buy any volume then anyway.
Hold plenty of these and hope it goes up.
But saying "it was 18p before Newmont" is meaningless. It was 18p when Uruguay was working and they prospects in Chile. Now they have neither. This is now almost a pure Anza play unless gold sharply recovers allowing Uruguay back into production. Anza might make Omi worth millions, I certainly hope so, but the share price last summer was for a very different company.
Not sure about an hour, but its been NT here too.
It might not be wound up, but this company is on the rocks. In brief they have spent a fortune over the last two years and have very little to show for it. Chile was an expensive road to nowhere. SG UG hasn't worked out as planned, despite $millions in investment. Seemingly there just isn't enough gold. They have warm words in Colombia but no mining. Now they are shutting down SG, which means effectively ceasing to be a producer - although given it was so inefficient and they have haemorrhaged money over the last 18 months perhaps that isn't the worst thing. Its hard to see what options this reorganisation can bring though - or at least how they would benefit shareholders. I mean who wants to buy a gold mine that doesn't work? I guess they can break up the equipment and run through any inventories but barring a move up by gold to around $1400 in the next few months I don't see an upside. Without Loryser they have no money, lines of credit, or seemingly permits to mine anywhere else. They have some prospects and that's about it. This leaves the company at an impasse. Gold explorers are not worthless - but they are much smaller businesses. Will OMI be able to cut an overhead which has ballooned dramatically?