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
37.5¢ |
Change
0.005(1.35%) |
Mkt cap ! $696.2M |
Open | High | Low | Value | Volume |
37.0¢ | 38.5¢ | 37.0¢ | $948.2K | 2.513M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 98471 | 37.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
38.0¢ | 120490 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 16693 | 0.370 |
1 | 100000 | 0.365 |
3 | 12912 | 0.360 |
3 | 70000 | 0.355 |
3 | 55300 | 0.350 |
Price($) | Vol. | No. |
---|---|---|
0.385 | 329898 | 4 |
0.390 | 52500 | 3 |
0.395 | 123120 | 11 |
0.400 | 660262 | 11 |
0.405 | 60000 | 2 |
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