OBM 8.97% 42.5¢ ora banda mining ltd

What will they do with all the free cashflow, page-2

  1. 11,785 Posts.
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    While I am for speculating about future decisions, due to OBMs past, I think there will be no talk of plant expansions until OBM has built its cash pile above $50-75m and they have at least 4 successful quarters of production meeting guidance and AISC.

    OBM already seem close to be able to extend the current mine plan by perhaps 1/2 year with the addition of Riverina South resources.
    I am quite hopeful that Gold Eagle also starts to get talked about, as the company has not really said much about it. Yet, they are now producing from it. So... they will hopefully ramp up the exploration from U/G platforms, as the costs will be lower/quicker turn around. There is hopefully going to be many more economic ounces just in that small deposit. But... again, to early to know.

    Longer term, I agree with you about the plant throughput being increased. But 1.2mpta is fine in the short/medium term, because what they really need is the sort of exploration campaign that large producers are undertaking. My thinking is if.... if they do indeed meet their guidance for FY2021, then the exploration will be doubled to $10-15m for FY2022. As OBM have enough ounces, what they need are economic ones, that requires more infill/extension drilling.

    OBM needs to hit the ground running, it cannot afford to be EGS 2.0. If it proves itself, then the share price will react accordingly.
 
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