Not trying to be rude, but when people who don't know the facts (which on your own account here, you don't) I prefer them to posit questions rather than statements and then a throwaway 'maybe longtermers can clarify'. Hopefully the below does, but if not I am sure some others who have been here through it can further assist.
AP deserves his shares.
Stock was oversold recently.
Lots to come over the next 3-6 months.
AP, and his wife, are extremely experienced and knowledgeable. AP held Mulgabbie for decades. The entire project was his - 100%. The initial IPO was at 25cents, and people loved it. (No, I did not take part in the IPO). For what now is a bonafide discovery, with signficant upside, maybe $10m was too cheap? Again, he was the vendor, the market paid what it did at the time for 50% of the project. That is, he didn't 'vend in some sites' the entire OZM tenements were his. Clearly OZM only exists because AP didn't have the personal cash to do all of this himself.
AP owns the drill rig that is used at Mulgabbie, and OZM only pays operating costs. This means OZM only pays about 40-50% of the usual drilling costs. AP wouldn't do this if it wasn't 'his company'.
AP lives in Kalgroolie and is regularly on site.
AP and his wife are a great team and welath of mining and geology knowledge. (Also, if you ever get the chance to speak to AP, he seems like a genuine, straight shooter and a good bloke).
AP runs the company 'on the smell of an oily rag'.
I am not complaining that AP got 40m shares for a valuable piece of land he has owned for decades. When you sell a house, do you not bargin for the best deal for yourself?
Martin Holland was brought on as the 'finance guru', he is relatively well known in micro / small cap mineral exploration stocks and does a lot of this finance work. MH got about 10% of the company for this services. To me, tha is probably excessive, but when you line up such a successful IPO at 25cents, maybe it isn't. Again, agreement between AP and MH - contract between them.
OZM was very tightly held.
MH is in several companies at the moment including Cobre (CBE). CBE exploded recently and retraced.
During the first half of this year, when tax loss selling started. MH (without telling AP or anyone else) started flogging his shares off. Other posters kept much better track of it, but MH appeared to be selling all the way down to 4cents.
At the same time MH was selling OZM, he was buying CBE (not exact amounts) but compartive amounts in many respects.
There is one reason for people to buy a stock (they think it will do well). There 1,000 reasons people might sell. Right now, OZM, AP and the posters on hot copper don't know why MH sold.
When you have a very tightly held gold stock, in a market that is not loving gold stocks and a major seller proceeds to dump 10% of the company, the SP will plummet. Which is exactly what happened to OZM.
AP has now identified, and is in the process of purchasing what could be a very exciting Lithium play. I do not know Li well at all. I think this stock is currently undervalued given its gold prospects alone. The Li is just another bonus to OZM.
Separate to the Li drilling etc we are expecting a scoping study, which should be very positive, and highlight a path to production through heap leach. That is a quick, cheap and profitable way in which OZM can start making serious money. This can fund further drilling at Mulgabbie (AP still believes that there is more shallow gold, but also 'the big one' at depth) and Patricia (very high grade narrow shoot gold project in WA with complex geology), and Li drilling, exploration and acquisitions in Brazil.
Exciting times for OZM indeed.
OZM Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
