OZM - OzAurum Resources

[greggles]

Have to agree, the results were none too exciting.

I prefer Nexus at this stage to OZM.

OZM just aren't coming up with drilling results that excite the market. I think the Mulgabbie North tenements have a lot of potential but they aren't finding any really thick intersections of high grade gold and that's what potential investors want to see. The thick intersections are low grade with thin areas of higher grade mineralisation.

I would like to see intersections of 30m+ with at least 5 g/t Au. That would really get punters interested.

 

[greggles]

If OZM does end up making a go of its gold projects, then today's ~$9 million market cap might end up being the bottom for this beaten down miner.

It does have some quality assets, it just hasn't been as lucky at it clearly had hoped by this stage.

 

[greggles]

With gold experiencing a bullish run, now is the time for a small cap gold explorers like OZM to try and capitalise on that increasing confidence in the sector.

Here's their future plans as announced in their presentation for the RIU Resurgence Conference in November 2022.

With no drilling results announced since 22 November and DD drilling "ongoing" and a maiden MRE due sometime this quarter, we are well overdue for some news I would think.

 

[greggles]

From today's Quarterly Report:

The assay results from the 1020m RC drilling campaign that was completed in early December are still pending. Chances are results will be announced this month. If they are good we should see a bit of a bounce.

 

[greggles]

No news of substance from OZM in more than two months. It all feels a bit odd to me. The share price continues to slip and is hitting new lows.

The Mulgabbie North Scoping Study Underway announcement released on 10 February stated the following, "Ongoing diamond drilling at the Mulgabbie North will recommence in mid-February 2023" and "The timing of the JORC 2012 compliant resource to be estimated at Mulgabbie North has been revised and is expected to be completed in Q2 2023" so presumably we should have news regarding both of these developments before the end of the current financial year.

 

[finicky]

Reflective of OZM's neighbour NXM releasing an MRE today that did not impress many. Down 42% early in trading, down about 35% currently. At a notional $100/oz, NXM's current 175kozs MRE: 46% indicated, 2.1g/t, 98% recoverable, constrained to 200m open pit, is worth $17.5m.

OZM Held

 

[Sean K]

I'm not sure if this warrants a 200% rise?

 

[greggles]

I'm not sure if this warrants a 200% rise?

View attachment 162451View attachment 162450

Even after today's share price spike, it's still only a $12 million market cap company. If this lithium project goes anywhere it will run hard.

 

[Sean K]

Even after today's share price spike, it's still only a $12 million market cap company. If this lithium project goes anywhere it will run hard.

Yeah, it was only $4m this morning...

 

[barney]

Yeah, it was only $4m this morning...

Yeah made a note in the "Risers" thread .... They had the MC listed as $7.4M in May @ 5.8 cents so Greg's $12M MC sounds about right.

 

[greggles]

Unsurprisingly OZM is in a trading halt this morning pending an announcement regarding a capital raising. It's unsurprising given that they just announced the acquisition of the Linopolis Jaime Lithium Project in Brazil on Friday.

I hope management has a detailed plan of how to manage capital and move its projects forward into 2024. I felt that they didn't follow through strongly enough with their WA gold projects in the last year and allowed the share price to languish at new lows. If they see a lot of potential with this new project then they need to get moving on it and start restoring some confidence in the company.

 

[finicky]

I got a handy capital loss to declare for FY23 from the sale of my stunted investment in this fine explorer.

Not Held

 

[Sean K]

Unsurprisingly OZM is in a trading halt this morning pending an announcement regarding a capital raising. It's unsurprising given that they just announced the acquisition of the Linopolis Jaime Lithium Project in Brazil on Friday.

I hope management has a detailed plan of how to manage capital and move its projects forward into 2024. I felt that they didn't follow through strongly enough with their WA gold projects in the last year and allowed the share price to languish at new lows. If they see a lot of potential with this new project then they need to get moving on it and start restoring some confidence in the company.

I know it's a smart thing to do, but geesh.

It's a sign of the times with these lifestyle junior resource companies. Jumping on bandwagons with no history of bringing a project to fruition, let alone in the mineral or metal they have expertise in.

These guys were a gold company just a few days ago.

Oz Au rum

I think they've been drinking from the rum cooler.

 

[barney]

I think they've been drinking from the rum cooler.

Lol.

 

[Sean K]

I got a handy capital loss to declare for FY23 from the sale of my stunted investment in this fine explorer.

Not Held

Why did you buy this?

Have been throwing GGs darts?

 

[finicky]

I liked that it was close to an NST operation and the M.D had his own diamond drill rig. I was casually throwing money around out of a false sense of security derived from my Chalice (CHN) holding.

 

[greggles]

I liked that it was close to an NST operation and the M.D had his own diamond drill rig. I was casually throwing money around out of a false sense of security derived from my Chalice (CHN) holding.

With a drill rig to use to free, I found it odd that they didn't release many assay results this year from Mulgabbie North. I just assumed that a lot of the drilling didn't hit anything worth reporting. They released some in February and then things went very quiet.

 

[Sean K]

I liked that it was close to an NST operation and the M.D had his own diamond drill rig. I was casually throwing money around out of a false sense of security derived from my Chalice (CHN) holding.

You could have just gone to Crown and put some of that on 13 red too.

 

[greggles]

$2.4 million raised through the issue of 31,750,000 FPO shares at 7.5c per share. A damn sight lower than the 16c OZM raised capital at in May last year. Each new share has a free attaching option that is exercisable at 11c within three years from the date of issue.

I think this CR is probably about as good as they could have expected to achieve in the current economic climate. Management had better use this $2.4 million very wisely as if they don't I suspect the market will not be as forthcoming the next time they put their hand out.

The market seems to like the details with OZM up 16.67% so far this morning.

 

[greggles]

Really impressive comeback from OZM in the last week. From around 3c to 14c in a few trading sessions. It will be interesting to see whether this bullishness has legs, or whether we will see a sell off soon after the lithium excitement wears off.