Production options

JORC resource due this half.

No chance of a JORC reserve, but given the gold price and the generally shallow depth, soft material with a decent grade, I'd pretty much expect the estimated ounces to be financially viable. Whatever. Let's call the resource a reserve.

The beauty of being where they are means there are multiple mills nearby (<50km - Fekola, Loulo, Tabakoto). Unless BCM have pulled some exploration cats out of the bag, Tabakoto must be running out of mill feed, and an expanded Fekola mill would have room for higher grade feed.

The only problem that I can see is that high gold prices make even low grade dirt quite profitable for mill owners, so toll milling charges might be quite high.

I'm not expecting much more than 750koz in the resource, and I'm hoping for a resource grade ~2g/t. I could see how the market could be underwhelmed by that.

IF they manage to get a toll milling production agreement up and running. Minimal capex, good roads etc all in place. At $1,900/oz that's A LOT of money each year. It's not even remotely hard to come up with earnings that put OKU on a PE of <2.

That would have to get a corporate's attention. What PE is B2 on? RSG?