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How much Cheaper?

lse:omi

#1

The POG seems to be rolling over; Orosur’s share price following.

That director’s sale [Marcet] on the 23rd probably spurred a bit more selling by PIs; almost £190k is a fair whack.
Having said, he’s hung on to ~60% of his pre-sale holding.

At least the share price has recovered a bit from its 15.6 [bid] low earlier this morning.
Some ‘bargain hunting’ buyers in play.
Not joining in yet as seems a fair chance that the POG could go below it’s key support level of $1305-1310/oz depending on the Jackson Hole etc pronouncements.
If it does that, where will it bottom?
There’s a lot of support formed around $1210-1220/oz; 3 dip bottoms during March-May this year. And now the 200day ma has climbed to $1220 and will head up further for as long as it acts as an effective support level for the spot price.
Of course, the POG may well recover from a low well above $1220; just looks a good juncture to buy substantially here if it does fall that far.

I can’t see an end to this POG bull phase while:
a. ECB+BOJ+BOE QE programmes continue on indefinite basis along with currency devaluation spiral.
b. Debt-deflation remains the basic economic situation for developed economies.

That does not mean the POG will necessarily set new highs much above the $1370/oz it has already attained during this bull phase.
Then again, I’m expecting the OMI price to go a fair way above 20p, just on another 6 months with the POG averaging above $1,300/oz as either the net cash should build to over $10-mn over that period and/or the Columbian Anza prospect gets seriously explored and then developed for at least a small scale mine with high grade deposits.

TS