2021 Corporate action surely inevitable, page-2

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Sharetrader78

13,252 Posts.

1913

27/01/21

19:34

Post #: 50482018
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Originally posted by Ladytradr ↑

As we start the New Year, OBM is within days of their first pour of gold from the refurbished Daveyhurst operation.

This is the first significant step towards de risking the operation for any potential suitors.

Nobody could really have bid for the company any earlier (after the previous owners issues) until it could be proved beyond any doubt that the plant worked efficiently and that all previous bottlenecks had been addressed.

GR Engineering knew all to well the operational issues with Eastern Goldfields and have now worked closely in step with OBM to fix everything.

The major shareholder Hawkes Point (47%) is a fund manager, not a miner, and will surely be looking for some form of strategic exit inside the next 12 months.

I think OBM (mkt cap. currently around $260 million) is very shortly going to be the best value listed gold producer in Australia (especially when the $270 million of accumulated tax losses and large untouched exploration upside is taken into account).
Please compare with SLR and RMS on production rates and market capitalisations

A good investment banker should be packaging up a sensible scheme of arrangement of scrip swaps where those 3 companies are merged together (on apples for apples, realistic and equal terms to create a beautiful gold company (~ $700 million the bank) that every indexed gold fund around the world would need to have a piece of.

David Quinlivan a leading common link to 2 companies (OBM and SLR) and the conservative culture of the 3rd (RMS) would be instep with the others.

The tax benefits in OBM could be chewed up rapidly and such a larger listed gold entity would give Hawkes Point the liquidity required to take some money off the table.

If not RMS or SLR, there will be plenty of other buyers interested.

I’m very confident of an OBM takeover in 2021 by someone, and it just may happen a bit sooner than we expect.

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I agree OBM must be a juicy target on successive production ... I just hope the market gives us some legs on success to above 60c before the predators come in ... certainly be more than one that will see the upside potential adding OBM to their operations

OBM Price at posting: 31.5¢ Sentiment: Buy Disclosure: Held
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Last 86.5¢		Change 0.060(7.45%)		Mkt cap ! $1.603B

Open	High	Low	Value	Volume
82.5¢	87.0¢	80.0¢	$7.181M	8.519M

Buyers (Bids)

No.	Vol.	Price($)
64	361876	86.0¢

Sellers (Offers)

Price($)	Vol.	No.
86.5¢	34618	4

View Market Depth

No.	Vol.	Price($)
54	332655	0.860
35	157321	0.855
10	58624	0.850
12	212996	0.845
10	124879	0.840

Price($)	Vol.	No.
0.865	29003	4
0.870	84254	8
0.875	101021	9
0.880	89576	10
0.885	68938	6

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2021 Corporate action surely inevitable, page-2

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