Osisko Metals Incorporated V.OM

Oban Mining is just getting started : Dundee

[alixx11]

"With an estimated C$68mln in cash, we think Oban is just getting started,” Dundee said

 

John Harrington ,    Tue 22 March

Oban Mining Corp (TSE:OBM) has completed the acquisition of Niogold but Dundee Capital Markets is expecting plenty more news flow to come.

“In just over a year, the company has consolidated five public companies, acquired seven additional properties, taken three strategic share positions and completed four private placement share issues. The company has assembled a resource comprised of 3.5MM oz of M&I (65Mt @ 1.7 g/t) and 2.3MM oz of inferred (27.9Mt @ 2.5 g/t) in four separate properties. With an estimated C$68MM in cash, we think Oban is just getting started,” the broker said, as it reiterated its 'buy, speculative risk' rating.

Before the NioGold acquisition, Oban was trading at a negative enterprise value (EV) – essentially the market capitalization adjusted for debt and cash – per ounce to its peers.

With the addition of NioGold's Marban deposit, Dundee's back of the envelope calculation reckons the EV/total mineral inventory ratio is US$7 per ounce, which is roughly one-third that of its peers, despite the company's healthy cash position, which is better than the seven peer companies combined, Dundee said.

“We see considerable upside as the market recognizes the progress Oban is making toward its strategic goal,” the broker said.

Dundee has a price target of C$2.50 for Oban. The shares currently trade at C$1.12.

source : https://www.proactiveinvestors.com/columns/proactive-broker-wrap/24569/brokers-oban-mining-corp-is-just-getting-started-24569.html