Caterpillar and Steelmakers surged as Biden $579 billion infrastructure deal buoyed outlook for US demand.
This will be booster for ferroalloy prices in the next few years and alloy prices is likely to remain high on stronger demand.
This coincides with the current ally shortages which is sustaining high alloy prices
OMH is currently enjoying 50% Gross Profit Margin on the alloy productions. With current production capacity of close to 400k ton of ferroalloy, at Gross Profit of US$500/ton, Gross Profit should hit a high of US$200m once full production resumes.
Current market cap is only A$700m (US$560m), huge price upside awaits patient investors.
OMH Price at posting:
96.5¢ Sentiment: Buy Disclosure: Held
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