OBM 6.58% 71.0¢ ora banda mining ltd

I must observe from your las poss that you must be an accountant...

  1. zog
    3,089 Posts.
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    I must observe from your las poss that you must be an accountant or similar persuasion; that's a valid (and important) position but it looks backwards and not forwards. As an ex owner of a tech company I am also not unaware that you have to pay your bills; but you also have to recognize that you are where you are and that past performance is not always a good indicator of the future (but it sometimes rhythm). I look at OBM as an engineer and that means examining closely their geology, plant, forecasting and management - losses from the past are just that - gone.
    In terms of geology the area is very perspective, they have 2mozs of resources (av grade 2.7g/t) but a low 470kozs (grade 2.4g/t) of reserves no doubt now depleted by the gold produced to date. The thing is that there is a lot of good gold remaining but they do need to convert more to reserves. The drill results released on 30/7/21 are also pretty good to more resources and ignores lithium. Bardoc gold also have a stranded HG deposit 10km from Davyhurst - i conclude that if they can get their act together the geology and resources are good.

    Regarding the plant despite the poor commissioning and initial poor throughput they appear to be getting on top of the problems and reported for the period October - January to be getting around 90% of nameplate capacity - that's not bad; hopefully more has come through from Feb onward - we shall see in April.

    I'm also not unimpressed with the management - they've had problems and been transparent and slowly fixing them. The latest is poor head grade reconciliation and they claim their parameter were wrong and they have now fixed them and provided new forecasts (guidance). Hawke Point have been over these revisions with a fine tooth comb and backed them for a further $20m.

    Nothings risk free; but hopefully they now have a way forwards. If you want a "safe" investment then this is not for you but risk comes with reward and IMO OBM "could be" a multibagger but that's a big risk but better than the casino
 
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Last
71.0¢
Change
-0.050(6.58%)
Mkt cap ! $1.324B
Open High Low Value Volume
72.5¢ 76.3¢ 69.5¢ $80.99M 115.4M

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1 7500 70.5¢
 

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71.5¢ 76828 3
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Last trade - 16.10pm 15/11/2024 (20 minute delay) ?
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