Connecting Otso Gold - Article 6Below is article 6 from Facebook group Connecting Otso Gold. Please join. https://www.facebook.com/groups/2579742182341276/ Article 6 - Key Summary points
1. Speculation Comments:
• We refrain to comment on remark that 90% are insiders. On data that we are privy of, from official and reliable sources, this speculation is totally wrong. Wonder why indulge in such erroneous speculations not backed by solid facts. Is this to mislead shareholders? For the uninformed if this speculation is indeed correct, does the uninformed understand that the company shall be reprimanded on serious violation of rule book.We request such shareholders to stay away from making irresponsible comments even though this is an informal social forum for the benefit and transparency of all shareholders. Any irresponsible statement would immediately be called out. We have information to the last minute detail on this asset. The reason why we want to refrain from laying out the data is coz this domain of responsibility belongs to the Board . Their job is to make such data transparent in the Quaterly and Annual Reports as befits the rule book of a listed asset in TSXV.
• Again wrong fact : Premilinary ripping of yet another speculation of this nature is that mine was out of favor coz of earlier board/s. Reality check : Mine has performed the worst since 2018 until 2020. Hard data: Last day, lowest valuation of the mine between 2015-17 on delisting in July-August 2017 (without ANY cash in the balancesheet) was (0,28SEK) per share equal to the best valuation market could give FTR/Nordic Gold Inc./OTSO between 2018-2020 with 17M USD (0,17CAD per share) cash . More over the best valuation between 2015-2017 with approx 4,5M EUR cash (roughly about the same cash as now in OTSO) was 1SEK per share = CAD 93M . We are today at 0,06CAD per share = 14M CAD.Wonder such gross misleading info to misguide shareholders .This will be covered in greater details in our articles.
2. Technical details illustrated from Article 1-5 summarizes two very clear parameters that all shareholders need to bear in mind. From a risk investment perspective, head grades can only incrementally improve to 1,2g/ton & such an incremental improvement in head grade is minimally required to increase Mill through-put from current 1,6MT to 2,0MT. Capital required for such improvements around head grades and through-put is in the range of 20MEUR. We do not expect any new drilling results conducted by Brian & Co to change technical dynamics already baked into our Articles (1-5) and thus no new technical guidance to the intrinsic valuation of the asset. There will be no change to the mean price point of 0,086 CAD per share. More so, more of the same information albeit with more capital burnt, needs to be backed by a rough about range of 20MEUR financing.
3. In ARTICLE 7 onwards, we shall ONLY cover financing, valuation issues, 8x Multiples, why are we at mean of 0,086, what data points market has in its memory to value this asset, why is the discount to fair value so high (thus where and what is the opportunity), what does the collective wisdom of the market understand and has already priced-in, what and where should we expect the board and the management to deliver shareholder value failing which the board and management should transparently call out for non-performance. Its indeed high time that shareholder’s get their due value from this asset. Such analytics that market has in its memory perhaps haven’t been understood by the Management & Board and ONLY new transformational data backed with an optimal capital structure can compel markets to merit a change to the analytics and thus to the market’s memory.