This update is a small positive with a modest improvement in the operations. It is pleasing that the mine can actually operate at design capacity.
The standstill agreement with CBA is positive and allows OMH to develop a revised profitable Life of Mine plan. Any cashflow generated from this current, interim mine plan will be for the benefit of the Bootu Ck lender, CBA in the first instance. OMH shareholders will only benefit from a viable long term plan which requires production at 100% of design at least. This plan will now not be available until the 1st Q CY'07.
We have presented two valuation scenarios, a going concern basis ($0.56/sh) and a worst case scenario where Bootu Creek and its debt are valued at nil ($0.21/sh).
OMH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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