GREY:OLEPF - Post by User
Comment by
tony1969on Oct 07, 2011 7:40pm
269 Views
Post# 19131678
RE: Pending buyout?
RE: Pending buyout?Come on guys, over 200 reads of my last post and no one has any idea or speculation about waht is happening with Oromin? I know everyone is frustrated as I am but we could still share ideas and opinions. Anyway, here is more speculation. This silence by management is very interesting. They have been posting drill results or other PR every month for a while now. It has been almost two months with no news. Maybe they are in some kind of quite period because they are in negotiations with a buyer. Maybe the buyer asked for them to stop the news flow while negotiating to prevent any catalyst to move the stock. At 85 cents, the entire JV (all 3 parties) have maket cap of only $293 million. Using a 5 million ounce total of gold in the ground (conservative considering management says it is more like 9 million), it gives us a value of $58.6 per ounce. Using the 9 million total gives us a $32.5 per ounce value. I know that gold in the ground prices depend on reserves, M&I, and inferred but I consider these prices way to low especially with gold at around $1640.
Comments?
Thanks,
Tony