Omai Gold Mine’s (TSXV: OMG) new PEA came in at a $4 billion after-tax NPV on a company worth $1.5 billion, and the market barely moved on it. The numbers explain why: production and mine life both beat expectations, the strip ratio improved, and the metallurgy held up. But costs climbed almost as fast as the gold price did, so the return barely moved with it.
That’s the gap this one was really about. AISC jumped 59% in two years, the tailings facility is short by 67 million tonnes, and the underground mining method priced in is the more expensive option for that ore geometry. Set against a neighboring Guyanese project that just sold for triple the multiple, Omai still trades cheap but for reasons that go beyond just being overlooked.
By the end of the call, the questions weren’t really about the mine plan anymore. They were about who builds it next.
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