Post by
trooper22 on Dec 05, 2023 9:11pm
Interesting Comparison of RGD also in Guyana-Very Interestin
reading the entire article is much more informative, but this little clip might peek your interest,
Guyana Developer Peer Comparison Reunion Gold (RGD:TSXV), is a gold development company with its flagship asset in Guyana and has a project comparable to that of Omai. We will note that Reunion Gold has a market cap of over $370M and has captured the market’s attention as a top-tier developer. We do not deny that this project is worth as much, or more, than the market is pricing it at, however, we believe the quality and risk profile of the Omai Gold Project is similar to or better than RGD and that is where the value lies in an investment in OMG vs. RGD. Reunion recently released its inaugural resource estimate highlighting a pit-constrained resource of 2.5 Moz of 1.84 g/t Au (indicated) and 1.8 Moz of 2.02 g/t Au (inferred) at a ~0.35 g/t Au cut-off. OMG has a very comparable resource that totals 3.7 Moz at an average grade of ~2.1 g/t Au with 1.9 Moz and 1.8 Moz in the indicated and inferred categories, respectively (Table 2) and OMG plans to report an updated resource estimate over the coming 3-6 weeks.
Beyond the resource itself, we believe the Omai Gold Project has a much lower risk path to production as it sits on the historical Omai Gold Mine. This project historically mined 3.8 Moz of gold over a 13-year mine life with historical recoveries of ~92%, highly competent ore, a valuable historical database, and great existing infrastructure (paved roads, water, power, etc.).
Reunion Gold’s project, on the other hand, has no historical data, no paved roads accessing the project, and limited surrounding infrastructure. Reunion is currently trading at ~$99/oz EV/oz (in-the-ground) vs. Omai at $7/oz. making OMG substantially undervalued. For example, if Omai’s shares were to trade at a similar multiple to that of RGD’s, it would result in the shares trading at $1.00/share and returning >1,300%