OMC omegacorp limited

the research

  1. 63 Posts.
    OMC has stated they have a target to start production on their uranium mine in July 2007 with an aim to move to becoming a producer in 2008.

    They currently have 13.7 million pounds of uranium and 10 million cash in the bank. This will be a very low capex mine and with metallurgical recoveries of 90% they will be able to mine right down to 200ppm.

    The current resource is open and will be substantially increased. They have only current drilled half their historical targets. They currently have 4 drill rigs in operation in the Kariba valley. Expect a rerating once drill results for Bungua come back. Rock chip samples have shown values as high as 3.8% uranium at Bungua.
    Also see the radiometric anomalies for Bungua for an idea of the size of these resources compared to the existing resources.

    The management have already proven themselves and are progressing at pace. They are excellant at keeping investors up to date and minimising dilution. Also they are building up expertise in management to grow the business. If you do some research into Glen Whiddon you wiill see his background is corporate acquisitions and mergers, there is a reason for bringing him in and this will likely become clear in the next 12 months.

    The Kariba valley in Zambia is shaping up to be the next uranium province in Africa. Eve through is subsidiary African Energy resources also has an initial resource of 5.5 million pounds with the same characteristics of OMC and their reesource will also grow substantially.Look for the rerating on AIM listing which is planned for the end of November.

    The political situation in Zambia is also excellant as they are looking to increase foreign investment in mining and making the environment favourable for this. Zambia is currently working with the International Atomic Energy Agency to develop a policy on uranium mining. The mining minister for Zambia has stated that they basing there policy on Namibia and South Africa, so this is very positive.

    Also they now have multiple institutional investors on board. These included some of the biggest. JP Morgan Chase and Co, and RAB Energy fund and others.

    OMC is substantially undervalued when you consider they could start mine construction in under 12 months.

    As always do your own research and these are my opinions only based on my research.





 
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