Assuming OBM are spitting out $200 million + free cashflow a year, a $100 million dividend should reflect into a ~$2 billion market capitalisation (5% yield)
If the market then doesn’t rate it fairly … and cashflow outlook is strong, they should start buying back stock (5% per year)
If OBM won’t do initiatives like that, they will be undervalued and vulnerable to takeover at discount to fair value.
If/when OBM is producing at a rate closer to 200,000 ounces pa (than 150,000 ounces pa) maybe in the next 18 months, on current $A gold prices, the world will be their oyster (and margins over $1500 an ounce)
i just hope in future they will focus primarily on organic growth opportunities and not go out and do an expensive/dilutive merger with another group just for the sake of growth at any cost to satisfy institutional investors.
With such a large highly prospective inventory of leases, anything is possible with the volume of $$$’s that can be annually thrown at sound exploration.
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Last
42.0¢ |
Change
-0.010(2.33%) |
Mkt cap ! $780.9M |
Open | High | Low | Value | Volume |
43.0¢ | 43.0¢ | 42.0¢ | $748.7K | 1.753M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 164604 | 42.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
43.0¢ | 75252 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 164604 | 0.420 |
3 | 155711 | 0.415 |
3 | 185300 | 0.410 |
4 | 129185 | 0.405 |
7 | 100536 | 0.400 |
Price($) | Vol. | No. |
---|---|---|
0.430 | 75252 | 4 |
0.435 | 5500 | 1 |
0.440 | 285723 | 3 |
0.450 | 203759 | 7 |
0.460 | 106850 | 3 |
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