OKU finds 3.5m ounces of gold and the stock could argue a valuation approaching $250m at that address.
How did i come up with that figure? PIR was taken out for $630m in stock by B2Gold a couple of years back and it had 5.3m ounces.The dollar was higher and the gold price was not all that different from memory. That deposit is basically only 30km away. I could see OKU having a stand alone plant , toll treating in PIR plant or another one close by or simply being taken over. One member of the management team actually use to work for PIR.
Mali is an excellent gold address with infrastructure and plenty of large producing mines. I dont see any issue with finding someone who wants to own this down the track and may explain why Chalice has stomped up for 15m shares. OKU is off most peoples radar but i want to see these results. The current lot of results have been terrific, so i am looking for more of the same. The market cap is also small for the upside. The stock should have a good old re-rate in the short term if i am correct and they have plenty of cash to complete their current drilling program. Lets see how we go. please dyor.
OKU Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
